By Jason Chau
Shares of Nissan Motor jumped after the Japanese carmaker gave a rosier earnings outlook despite continued weakness in sales.
The auto giant's stock rose as much as 6.5% in early Tokyo trading on Tuesday before trimming gains. Shares were last 4.3% higher.
Nissan's guidance for a narrowed net loss for the fiscal year ended March and a swing to operating profit is welcome news for investors as the Japanese carmaker undergoes restructuring to cut costs and revive sales.
The Yokohama-based company gave the updated forecasts on Monday, now projecting a net loss of 550.0 billion yen, or about $3.45 billion, versus the Y650.0 billion loss predicted in February.
It also no longer expects to post what would have been its first annual operating loss since 2021, according to LSEG data. In addition, Nissan slightly raised its net sales forecast for the year and said it anticipates improved cash flow in the second half.
The carmaker attributed the operating profit revision to the removal of U.S. emissions regulations, improved cost performance and favorable foreign exchange effects, it said in a statement.
Still, the company faces intensifying global competition--particularly from Chinese electric-vehicle makers--and softening demand for its models.
Nissan's global sales fell by 4.2% in the last fiscal year, and by 7.0% in March alone. Annual global production also dropped 3.7%.
Write to Jason Chau at jason.chau@wsj.com
(END) Dow Jones Newswires
April 28, 2026 00:16 ET (04:16 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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