Abstract
Honda will release its quarterly results on February 10, 2026 Pre-Market. This preview synthesizes recent financial performance and forecasts through February 03, 2026, focusing on revenue, margins, adjusted EPS, and segment dynamics to frame expectations for the upcoming report date.
Market Forecast
Based on Honda’s previous report and available forecast indicators, the market expectation points to modest revenue growth this quarter, with attention on operating profit normalization; forecast specifics for adjusted EPS, gross profit margin, and net profit margin were not disclosed in the latest dataset, while revenue consensus implies a cautious rebound year-over-year. The main business highlight centers on Automotive, expected to track steady unit sales supported by pricing and mix discipline, while Motorcycles and Financial Services underpin broader margin resilience. The most promising segment is Motorcycles, benefiting from demand in emerging markets and mix upgrades, with revenue momentum expected to improve year-over-year as supply and pricing stabilize.
Last Quarter Review
Honda’s last quarter results reflected pressure after a strong first-half: revenue totaled 35.15 billion USD, gross profit margin was 20.37%, GAAP net profit attributable to the parent company was 11.52 billion USD, net profit margin was 2.18%, and adjusted EPS was not disclosed; year-over-year changes in revenue were a decline of 3.91%, and EBIT contracted sharply. A key highlight was that gross profit margin held at 20.37% despite weaker top-line and EBIT, indicating relative stability in manufacturing costs and pricing. Main business highlights: Automotive revenue was 7.00 billion USD, Motorcycles revenue was 1.92 billion USD, Financial Services revenue was 1.68 billion USD, and Power Products and others contributed 0.19 billion USD, with overall revenue declining 3.91% year-over-year.
Current Quarter Outlook
Automotive
Automotive remains Honda’s largest business and the principal driver of quarterly outcomes. Following a sequential slowdown, the focus is on inventory discipline, product mix, and incentives across key regions. The quarter-on-quarter net profit shrinkage of 41.45% last quarter highlights sensitivity to volumes and pricing; stabilizing new model cycles and fleet channels could temper volatility, while the gross margin base near 20.37% provides some cushion if cost inputs remain contained. Watch for regional mix shifts and currency translation effects on reported USD revenue, as they can swing margins and headline growth even with relatively stable unit deliveries.
Motorcycles
Motorcycles show the strongest relative growth potential this quarter. The segment’s exposure to emerging markets supports volume resiliency, and premiumization trends can lift average selling prices. Last quarter’s revenue contribution of 1.92 billion USD sets a solid baseline; if macro conditions in Southeast Asia and Latin America hold, segment revenue and operating margin could outpace the broader company performance year-over-year. Supply chain normalization and targeted product refreshes may further support segment profitability, although foreign-exchange movements remain a swing factor for reported results in USD terms.
Financial Services
Financial Services is an important earnings stabilizer, contributing 1.68 billion USD last quarter. Credit performance, residual values, and funding costs will be central to this quarter’s margin profile. If asset quality remains healthy and financing volumes keep pace with Automotive deliveries, segment EBIT could trend upward, buttressed by disciplined underwriting. However, any deterioration in residuals or higher funding costs would pressure net interest margins and could limit upside to consolidated EPS, making this segment a key watch item for the market.
Stock Price Drivers
The stock’s near-term trajectory will likely hinge on the balance between pricing discipline and unit growth in Automotive, resilience in Motorcycles, and credit metrics within Financial Services. Currency headwinds or tailwinds could materially affect reported revenue and margins given Honda’s global footprint. Consensus will also react to visibility on operating profit normalization after last quarter’s EBIT slump, including management commentary on cost controls, model mix, and regional outlooks.
Analyst Opinions
Across recent institutional commentary, the majority view is cautiously positive, emphasizing stabilization in Automotive and better-than-expected momentum in Motorcycles while recognizing margin sensitivity to currency and funding costs. Analysts point to the potential for sequential improvement in EBIT from last quarter’s 0.48 billion USD actual toward previously modeled levels near 1.91 billion USD if volumes and mix recover, and if cost inputs remain stable. Several institutions highlight Motorcycles as an outperforming lever for consolidated profitability, noting resilient demand and pricing in key emerging markets. The consensus leans toward a measured recovery narrative rather than a sharp rebound, with attention on management’s commentary around operating profit drivers, FX impact, and financing trends.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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