Nissan (7201) revises loss forecast, improved outlook prompts re-evaluation buying
Nissan Motor Co., Ltd. shares advanced on 29 April 2026, after the automaker revised its earnings forecast for the fiscal year ending March 2026. The company indicated an outlook for narrowing its net loss, which prompted re-evaluation buying following a period of selling pressure. The Japanese car manufacturer's stock is trading at ¥362, a 3.3% increase from its previous close of ¥351.
The company announced on 27 April that it expects to report a net loss of ¥550 billion for the fiscal year ending March 2026, an upward revision that narrows the projected loss. This revision also provided an outlook for operating profit to turn positive in the preceding fiscal year. Supporting the upward movement, reports indicated a 23.0% increase in new car sales in China for March.
Despite the positive movement, analyst consensus on Nissan remains neutral, with an average target price of ¥411 as of 28 April. The current trading price reflects a market response to the updated financial guidance and regional sales data.
Why Nissan's improved outlook is driving shares
Nissan Motor Co., Ltd. is a global automotive giant, designing, manufacturing, and selling a wide range of passenger cars, commercial vehicles, and related components. Its revenue streams are diverse, encompassing new vehicle sales, after-sales services, and financial offerings, catering to both individual consumers and corporate fleets. The company is also heavily invested in developing electric vehicles and autonomous driving technologies, positioning itself for future mobility trends.
Today, the main factor driving up the company's share price was an upward revision of its consolidated net loss forecast for the fiscal year ending March 2026. Specifically, according to information announced on 27 April, the projected net loss is now expected to be ¥550 billion, a reduction from the initial forecast. This suggests the possibility of operating profit turning positive in the previous period, which is thought to have eased short-term market concerns and attracted re-evaluation buying. The reported 23.0% increase in new car sales in the Chinese market for March also contributed to supporting the share price.
This improved earnings outlook was well-received, and Nissan Motor's share price rose by 3.3% from its previous close of ¥351, currently trading at ¥362. The market has thus judged the company's financial situation to be healthier than previously anticipated.
This is similar to a marathon runner who re-evaluates their pace mid-race and declares, "I actually have more energy left" towards the end. The spectators, realising the runner's final performance could be better than initially expected, become more hopeful and cheer them on.
Nissan Motor Co., Ltd.
Nissan Motor Co., Ltd. (7201) is a global automotive manufacturer, producing vehicles and components under brands such as Nissan, Infiniti, Datsun, and Heritage. Its product portfolio encompasses a wide range of vehicles, engines, transmissions, and automotive parts, alongside specialised vehicles and motorsports engines. Beyond manufacturing, Nissan offers comprehensive financial services, including auto credit, leasing, and insurance, and engages in inventory finance. The company's operations extend to vehicle design, engineering, and raw material analysis. Further diversification includes travel, environmental, and facility services, as well as information and logistics businesses. Nissan also promotes motorsports through event planning and vehicle modification, sells related parts, and explores second-life applications for automotive lithium-ion batteries. Additionally, it imports and distributes Renault vehicles and parts, and manages professional football teams and academies. The company was established in 1933 and is headquartered in Yokohama, Japan.