moneyheap
HMC · Analysis updated Nov 11, 2026, 4:46 PM ET
Why is Honda Motor Co., Ltd. (HMC) stock moving?
Honda's fiscal Q2 was mixed. Operating profit fell 39% to ¥118B against a ¥250B consensus, because of ¥484.8B in EV restructuring costs. Revenue beat, with the quarter at about $39.1B. Management raised full-year operating profit guidance 20% to ¥780B and net profit guidance to ¥500B. Record motorcycle sales, U.S. hybrid demand and a weak yen drove the raise. The new guidance is still below the ¥839B analysts expected, and China remains weak. Excluding EV charges, the full-year operating profit is projected at about ¥1.3T. The full-year EV loss forecast is unchanged at ¥520B, so most of the charge is already booked, which could make the second half cleaner. Cumulative EV charges above $12B, the China slump and tariff and geopolitical risks remain. A $3B Ohio hybrid plant supports the long-term US position. The shares peaked near $36.88 on Nov 5, ahead of results. They have since fallen about 9% to $33.35, with a 4.4% drop today on the heaviest volume in the period, about 1.6M shares. The sell-off confirms that the market is focused on the guidance shortfall. The stock is now close to the roughly $34 consensus target and near GF Value of about $34.86.
News behind the analysis
- Honda Motor Stocks Fall 3.63% as EV Charges Cut Q2 Operating Profit 39%Q2 operating profit fell 39% to ¥118B, well below the ¥250B forecast, on ¥484.8B of EV costs. About 93% of the full-year EV charge is already booked.
- Why is Honda Motor stock sliding today?Honda's Tokyo shares fell 4.7% to ¥1,766.5 after a guidance upgrade that fell short of analyst expectations.
- Honda raises full-year outlook despite second-quarter profit slumpNet profit fell 42.8% in Q2. The first-half adjusted operating profit excluding EV charges rose 71.3% to ¥1.13T. The ¥70 dividend forecast was kept.
- Honda Motor (NYSE:HMC) Shares Gap Down on Disappointing EarningsQ2 EPS of $0.32 missed the $0.95 consensus, while revenue of $39.13B beat estimates. The company plans a $3B Ohio hybrid plant.
- Honda raises outlook even as failed EV bet weighs on profitThe new ¥780B operating profit forecast is below the ¥839B analyst estimate. Excluding EV losses, full-year operating profit is projected at ¥1.3T.
- Honda raises annual profit outlook 20% despite EV restructuring costsThe profit forecast was raised on U.S. hybrid demand and a weak yen. Cumulative EV restructuring costs now exceed $12B.
- Honda raises its full-year profit forecast 20% to ¥780 billion as motorcycles, U.S. hybrids and a weak yen offset EV chargesNet profit guidance rose to ¥500B from ¥400B. The full-year EV loss forecast is unchanged at ¥520B.
- Honda Raises Full-Year Profit Outlook, Books $3 Billion in EV-Related Costs in Q2The ¥484.8B charge brings cumulative EV charges above $12B. The company is shifting its focus toward hybrids.
- Honda Motor Co., Ltd. (HMC) Stock Price, Quote, News & AnalysisCoverage includes the planned $3B Ohio factory and the raised FY2027 outlook. It also notes China weakness.
- Honda Motor Co Ltd (HMC) Stock Price & News - Google FinanceHeadlines include a recall of more than 635,000 vehicles over a steering defect and an EPS miss alongside a revenue beat.
About Honda Motor Co., Ltd. American Depositary Share, each representing three (3) shares of Common Stock
Honda is a Japanese company that makes cars, light trucks and SUVs, and also builds more motorcycles than any other company in the world. Its US-listed shares are ADRs, each worth three Tokyo-listed shares. Honda stands out because its motorcycle business is unusually profitable, and in fiscal 2026 (year ended March 2026) it reported a rare net loss after it cancelled or cut back electric-vehicle plans in North America and China.
How it makes money
Selling cars (Accord, Civic, CR-V, Pilot, Acura) is Honda's largest source of revenue, and North America is its most important market. Motorcycles, about ¥3.5 trillion of roughly ¥21.8 trillion in fiscal 2026 revenue, bring in a much larger share of profit than of sales. Honda also earns money from a financial services arm that provides auto loans and leases, and from power products such as engines, generators and lawn equipment.
What usually moves HMC
- US auto sales and pricing
- Yen–dollar exchange rate
- US tariffs and trade policy
- EV strategy shifts and related write-downs
- Motorcycle demand in Asia (India, Indonesia)