Nissan Motor reported a net profit of approximately 3.7 to 3.8 billion yen (about 24 million USD) for the April-June 2026 quarter, marking a return to profitability after losses in recent years [1, 2, 3]. The automaker achieved an operating profit of around 77.9 to 78 billion yen (495-497 million USD) for the quarter, improving from an operating loss in the same period last year [4, 3, 5]. Net sales for the quarter reached approximately 2.96 to 3 trillion yen (18.8 billion USD), broadly in line with company projections [4, 3, 5].

Despite this progress, Nissan lowered its full-year global vehicle sales forecast for fiscal 2026 to 3.15 million units from an earlier estimate of 3.3 million units, citing tougher business conditions, especially in China [4, 3, 5]. The Chinese automobile market declined 22% in the first half of 2026, and Nissan’s sales in the country fell by 15% in the same period [5].

Nissan reaffirmed its full-year financial targets of 200 billion yen in profit and 13 trillion yen in revenue for the fiscal year ending March 2027, signaling confidence in reaching these goals despite lowering the sales forecast [1, 4, 3, 5]. CEO Ivan Espinosa acknowledged ongoing challenges from rising raw material costs, currency fluctuations, competition, and geopolitical uncertainties in China and West Asia. Nonetheless, he stressed progress on cost-saving efforts and strategic adjustments under the company’s Re:Nissan restructuring plan: "The environment remains challenging, particularly in China and West Asia, but our direction is clear. We are managing disruption where it exists, building momentum where we see opportunity, and executing Re:Nissan with discipline and urgency" [3]. Espinosa added, "We made considerable progress in our cost-saving efforts. However, global industry challenges, particularly in China and the Middle East, have affected parts of our business" [5].

The Re:Nissan plan involves launching new models including the Leaf electric vehicle, Kicks compact SUV, Elgrand minivan, and new energy vehicles targeting China to boost profitability and competitiveness [1, 2, 3]. However, the company’s financial position remains under pressure, with debt around 4.4 trillion yen and credit rating agencies having downgraded Nissan to junk status [5].

Nissan’s turnaround relies partly on aggressive cost management, faster vehicle development cycles, and stronger market performance in the U.S. and China [4, 5]. The automaker will continue executing its restructuring efforts while monitoring challenging market conditions.

On August 3, Nissan reaffirmed its fiscal 2026 full-year profit and revenue targets but officially revised down the vehicle sales forecast to 3.15 million units due to ongoing market headwinds [4, 3, 5].