Honda's fundamental outlook is mixed: a sharp 2027Q1 recovery (net income ¥450.9B, EPS growth 147.5%) contrasts with severe 2026Q4 losses (operating margin -17.3%), indicating earnings instability. Growth drivers include a 13.5% revenue surge in 2027Q1 and inc...
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue growth decelerated to 0.5% YoY in 2026Q4, with gross margin stable near 20-22%, but operating margin plunged to -17.3% in 2026Q4 due to R&D and SG&A spikes, before recovering to 8.8% in 2027Q1.
The Wall Street consensus price target of $31.51 represents a potential upside of +17.4% from the current stock price of $26.85.
Honda Motor Co., Ltd. reported revenue exceeding analyst expectations, indicating strong financial performance.
The current stock price around $26 may present a buying opportunity for investors seeking value in the automotive sector.
Trailing total returns as of 9/23/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Aug 5, 2026 | $2.18+78.7% vs $1.22 | $38.3B+5.7% vs $36.2B |
Q2 2026 May 14, 2026 | -$4.20+26.8% vs -$5.74 | $36.8B+11.6% vs $33.0B |
Q1 2026 Feb 10, 2026 | $0.76+47.6% vs $0.52 | $34.8B+4.5% vs $33.3B |
Q4 2025 Nov 7, 2025 | $0.60-11.6% vs $0.68 | $35.3B-1.9% vs $35.9B |
The US auto safety regulator on Tuesday closed an investigation into rear-view camera failures in 129,092 Honda Ridgeline pickup trucks, recalled in 2022, without further action.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
F and HMC take different paths as hybrids, EV investment, motorcycles and recurring revenues shape their 2026 growth prospects.
Hybrid cars are gaining ground as EV challenges mount, putting Toyota, Honda and Hyundai in focus and boosting the outlook for auto ETFs.
Benchmark HMC against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Honda Motor Co., Ltd. (HMC)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $32.42 | $42.07B | -16.03 | 0.5% | -1.94% | -3.41% | 4.44% | |
| $192.06 | $227.43B | 9.65 | 5.51% | 8.63% | 11.52% | — | |
| $13.10 | $52.24B | -6.36 | 1.23% | -3.93% | -18.89% | — | |
| $83.45 | $75.48B | 25.52 | -1.29% | 1.03% | 2.95% | — | |
| $4.83 | $13.99B | -0.54 | -2.15% | -9.23% | -33.77% | — | |
| $378.90 | $1.5T | 350.83 | -2.93% | 3.68% | 4.55% | — |
Honda Motor Co., Ltd. (HMC) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
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Honda Motor Co., Ltd. (HMC) stock FAQ — growth, dividends, profitability & financials explained
Honda Motor Co., Ltd. (HMC) reported $22.52T in revenue for fiscal year 2026. This represents a 327% increase from $5.28T in 1997.
Honda Motor Co., Ltd. (HMC) grew revenue by 0.5% over the past year. Growth has been modest.
Honda Motor Co., Ltd. (HMC) reported a net loss of $169.70B for fiscal year 2026.
Yes, Honda Motor Co., Ltd. (HMC) pays a dividend with a yield of 4.44%. This makes it attractive for income-focused investors.
Honda Motor Co., Ltd. (HMC) has a return on equity (ROE) of -3.4%. Negative ROE indicates the company is unprofitable.
Honda Motor Co., Ltd. (HMC) generated $7.21B in free cash flow for fiscal year 2026. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.
