Honda Earnings Outlook Marred by Tariff Uncertainty -- Market Talk

Dow Jones
2025/11/12

0938 GMT - Honda is facing multiple headwinds to earnings, Morningstar's Vincent Sun says. The research firm cuts its fiscal 2026 operating profit forecast for the company by Y150 billion to reflect the impact of chip shortages in October. Honda's automotive segment stayed lossmaking in 2Q due to provisions for EV projects, weak volumes, FX moves and tariffs, the analyst writes in a note. Honda has cut its guidance too, lowering fiscal 2026 revenue estimates by 2% on weaker sales, primarily in North America. It slashed operating profit projections by 21%, citing currency headwinds and chip shortages. Morningstar maintains a Y1,680 fair value estimate on Honda, seeing shares as fairly valued amid rising uncertainty around tariffs and U.S. consumption. Shares closed at Y1,544.50. (jason.chau@wsj.com)

 

(END) Dow Jones Newswires

November 12, 2025 04:38 ET (09:38 GMT)

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