Honda Q3 Earnings Top Expectations, Revenues Decline Y/Y

Core Insights - Honda (HMC) reported earnings of 76 cents per share for Q3 of fiscal 2026, exceeding the Zacks Consensus Estimate by 90.2%, but down from $1.31 per share in the same quarter last year [1][10] - Quarterly revenues were $34.7 billion, a decrease from $36.3 billion year-over-year [1][10] Segmental Highlights - The Automobile segment's revenues decreased by 8.8% year-over-year to ¥3.43 trillion ($22.3 billion), resulting in an operating loss of ¥93.4 billion ($606.3 million), compared to an operating income of ¥144.6 billion in the same quarter of fiscal 2025 [2][10] - The Motorcycle segment reported revenues of approximately ¥1.01 trillion ($6.58 billion), an increase of 13.1% year-over-year, with an operating profit of ¥178.3 billion ($1.15 billion), down 1.3% year-over-year [3] - Revenues from the Financial Services segment totaled ¥879 billion ($5.7 billion), up 3.5% year-over-year, with an operating profit of ¥74.8 billion ($485 million), down 9.1% year-over-year [3] - Revenues from Power Products and Other Businesses were ¥97.5 billion ($632 million), a decline of 0.6% year-over-year, with an operating loss widening to ¥6.3 billion ($40.9 million) [4] Financials & FY26 Outlook - As of Dec. 31, 2025, consolidated cash and cash equivalents were ¥4.85 trillion ($31 billion), while long-term debt stood at approximately ¥8.29 trillion ($53.1 billion) [5] - For fiscal 2026, Honda projects consolidated sales volumes of 14.25 million units for Motorcycles, 2.64 million units for Automobiles, and 3.67 million units for Power Products, indicating a 4.1% growth in Motorcycles but a decline of 7% and 0.8% in Automobiles and Power Products, respectively [6] - Honda forecasts fiscal 2026 revenues of ¥21.1 trillion, a decline of 2.7% year-over-year, with an operating profit of ¥550 billion, indicating a contraction of 54.7% year-over-year [7]