Five questions about Nissan’s FY26 first-half results

In brief:

Nissan’s first-half results showed progress under Re:Nissan alongside continued challenges in some markets.

Here, we answer five key questions about our performance, the outlook for the second half and the path toward sustainable, profitable growth.

Nissan recently announced its financial results for the first half of fiscal year 2026.

The company reported operating profit of ¥80 billion for the first half and continues to forecast ¥200 billion in operating profit for the full fiscal year.

At the same time, Nissan is navigating challenging conditions in some markets while accelerating Re:Nissan initiatives and preparing for further product launches in the second half.

Here are five key questions about the results and what comes next.

1. Why is Nissan maintaining its full-year operating profit outlook despite the weaker Q2 performance and lower sales forecast?

Q2 was affected by temporary factors, including the Kumamoto earthquake and the timing of cost reductions. We expect some of these effects to reverse in H2.

At the same time, retail sales outside China are expected to grow 4.1% year on year, supported by new products including Rogue Hybrid in the U.S., Kicks and Elgrand in Japan and other upcoming models. A further ¥140 billion of Re:Nissan cost reductions are also expected in H2. Together, these factors support our ¥200 billion full-year operating profit outlook.

2. What is Nissan doing to address the challenging market conditions in China?

We are taking immediate actions to adapt our China business to current market realities while expanding the role China can play in Nissan’s global growth.

Domestically, we are aligning ICE production and dealer inventory with demand while accelerating our New Energy Vehicle (NEV) portfolio. At the same time, we are significantly expanding exports from China, moving from two models serving two markets to five models across 12 market clusters. This allows us to leverage China’s product development, manufacturing capabilities and competitive cost base across more global markets.

3. What will drive Nissan's recovery in the second half of FY26?

The biggest drivers will be stronger sales performance, especially from new products, a richer product mix and continued cost reduction.

We expect higher volumes in the second half, supported by product launches and momentum in markets including the U.S. and Japan. Rogue Hybrid will strengthen our U.S. lineup, Kicks and Elgrand are already creating traction in Japan, and Frontier Pro will support growth in Mexico and other markets. Navara Pro, Primera EV and the N7 will also contribute.

At the same time, Re:Nissan cost actions will continue to flow through the P&L, with further variable and fixed cost reductions expected during H2. Together, these factors support our expectation of ¥120 billion in second-half operating profit.

4. Is the Re:Nissan plan delivering sustainable improvements in Nissan's underlying performance?

Yes. We are seeing steady improvements in the underlying cost structure, although there is still more work to do.
In H1, operating profit improved by ¥107.7 billion year on year to ¥80 billion. Re:Nissan delivered ¥110 billion in additional cost reductions during the half, including ¥80 billion in variable costs and ¥30 billion in fixed costs.

Cumulative savings have now reached ¥365 billion, putting us on track toward the ¥500 billion target. Importantly, the improvement is increasingly coming from structural areas such as purchasing, manufacturing efficiency and vehicle costs. We will convert those improvements into stronger automotive profitability and cash generation.

5. Beyond restructuring, how will Nissan return to sustainable sales and earnings growth?

Re:Nissan gives us a stronger foundation. The next chapter is about adding even more compelling products, distinctive technology and ensuring stronger business quality.

We are already seeing elements of that in the U.S. and Japan, where renewed products, improved mix and sharper retail execution are supporting growth. In H1, U.S. sales increased 5.5% and Japan sales increased 6.3%.

We are continuing to invest in future products and technology to support sustainable growth even while restructuring, with investment directed toward programs such as Rogue Hybrid, Elgrand and Kicks.

Our next business plan will set out how we build from that foundation toward sustained profitable growth. The plan will translate our longer-term vision into concrete priorities and actions

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