Honda Q2 Earnings Miss Expectations, Revenues Decline Y/Y

Honda HMC reported earnings of 60 cents per share for the second quarter of fiscal 2026, missing the Zacks Consensus Estimate of 62 cents. The bottom line, however, rose from the year-ago quarter’s earnings of 43 cents per share. Quarterly revenues totaled $35.9 billion, which lagged the Zacks Consensus Estimate of $37.1 billion and fell from the year-ago period’s figure of $36.2 billion.Honda Motor Co., Ltd. Price, Consensus and EPS Surprise Honda Motor Co., Ltd. price-consensus-eps-surprise-chart | Honda Motor Co., Ltd. QuoteSegmental HighlightsFor the three-month period, which ended on Sept. 30, 2025, revenues from the Automobile segment decreased 4.6% year over year to ¥3.46 trillion ($23.3 billion). The segment registered an operating loss of ¥43.4 billion ($292.4 million) against an operating income of $35.2 billion in the corresponding quarter of fiscal 2025. Revenues from the Motorcycle segment came in at around ¥969 billion ($6.53 billion), which increased 11% year over year. The unit’s operating profit came in at ¥179.3 billion ($1.21 billion), up 21% year over year.Revenues from the Financial Services segment totaled ¥846.2 billion ($5.7 billion), down 3.3% year over year. The unit’s operating profit totaled ¥58.2 billion ($392 million), down 25% year over year.Revenues from Power Product and Other Businesses came in at ¥100.3 billion ($675 million), up 2% year over year. The segment’s operating loss narrowed to ¥78 million compared with the operating loss of ¥3.2 billion incurred in the same period last year.Financials & FY26 ViewConsolidated cash and cash equivalents were ¥4.64 trillion ($31.2 billion) as of Sept. 30, 2025. Long-term debt was around ¥8.13 trillion ($54.7 billion) as of Sept. 30, 2025.Honda projects fiscal 2026 consolidated sales volumes from the Motorcycle, Automobile and Power Products segments to be 14.25 million units, 2.64 million units and 3.67 million units, respectively. The forecast implies growth of 4.1% year over year in the Motorcycles unit. However, Automobile and Power Product Unit sales are likely to decline 7% and 0.8%, respectively, year over year in fiscal 2026.For fiscal 2026, Honda forecasts revenues of ¥20.7 trillion, implying a decline of 4.6% year over year. Operating profit is envisioned at ¥550 billion, indicating a contraction of 54.7% year over year. Pretax profit is forecasted to be ¥590 billion, suggesting a drop of 55.2% year over year. The muted guidance comes amid macroeconomic and tariff-related challenges. The company will pay an interim and year-end dividend of ¥35/share each in fiscal 2026.Honda’s Zacks Rank & Key PicksHMC carries a Zacks Rank #3 (Hold) at present.Some better-ranked stocks in the auto space are General Motors Company GM, OPENLANE, Inc. KAR and Garrett Motion Inc. GTX, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for GM’s 2025 and 2026 EPS has improved 70 cents and $1.07, respectively, in the past 30 days.The Zacks Consensus Estimate for KAR’s 2025 sales and earnings implies year-over-year growth of 9.4% and 48.2%, respectively. EPS estimates for 2025 and 2026 have improved 9 cents and 11 cents, respectively, in the past seven days.The Zacks Consensus Estimate for GTX’s 2025 sales and earnings implies year-over-year growth of 2.6% and 16.7%, respectively. EPS estimates for 2025 and 2026 have improved 12 cents and 22 cents, respectively, in the past 30 days. #1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Honda Motor Co., Ltd. (HMC): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report OPENLANE, Inc. (KAR): Free Stock Analysis Report Garrett Motion Inc. (GTX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks