Revenue growth reached 10.6% in 2026Q4, yet gross margins contracted sharply to 6.4% from historical averages exceeding 20%, indicating severe cost pressures.
| Metric | Mar'26 | Mar'25 | Mar'24 | Mar'23 | Mar'22 | Mar'21 | Mar'20 | Mar'19 | Mar'18 | Mar'17 | Mar'16 | Mar'15 | Mar'14 | Mar'13 | Mar'12 | Mar'11 | Mar'10 | Mar'09 | Mar'08 | Mar'07 | Mar'06 | Mar'05 | Mar'04 | Mar'03 | Mar'02 | Mar'01 | Mar'00 | Mar'99 | Mar'98 | Mar'97 |
|---|
| Sales/Revenue | 23.11T | 21.69T | 20.43T | 16.91T | 14.55T | 13.17T | 14.93T | 15.89T | 15.36T | 14T | 14.6T | 12.65T | 11.84T | 9.88T | 7.95T | 8.94T | 8.58T | 10.01T | 11.97T | 11.09T | 9.91T | 8.65T | 8.15T | 7.96T | 7.34T | 6.58T | 5.9T | 6.16T | 6.04T | 5.28T |
| Revenue Growth % | 6.56% | 6.17% | 20.83% | 16.18% | 10.49% | -11.79% | -6.03% | 3.43% | 9.73% | -4.12% | 15.45% | 6.79% | 19.89% | 24.28% | -11.06% | 4.17% | -14.3% | -16.35% | 7.94% | 11.92% | 14.47% | 6.12% | 2.44% | 8.4% | 11.62% | 11.44% | -4.09% | 1.83% | 14.49% | 23.29% |
| Cost of Goods Sold | 19.29T | 17.02T | 16.02T | 13.58T | 11.57T | 10.44T | 11.85T | 12.58T | 12T | 10.87T | 11.33T | 9.45T | 8.76T | 7.35T | 5.92T | 6.5T | 6.41T | 7.42T | 8.52T | 7.87T | 7.01T | 6.04T | 5.6T | 5.4T | 5.02T | 4.64T | 3.9T | 3.99T | 4.02T | 3.55T |
| COGS % of Revenue | 83.47% | 78.5% | 78.4% | 80.3% | 79.49% | 79.27% | 79.38% | 79.18% | 78.12% | 77.62% | 77.61% | 74.74% | 73.98% | 74.36% | 74.48% | 72.7% | 74.77% | 74.11% | 71.18% | 70.94% | 70.75% | 69.8% | 68.73% | 67.87% | 68.4% | 70.51% | 66.14% | 64.87% | 66.5% | 67.2% |
| Gross Profit | 3.82T | 4.66T | 4.41T | 3.33T | 2.98T | 2.73T | 3.08T | 3.31T | 3.36T | 3.13T | 3.27T | 3.19T | 3.08T | 2.53T | 2.03T | 2.44T | 2.16T | 2.59T | 3.45T | 3.22T | 2.9T | 2.61T | 2.55T | 2.56T | 2.32T | 1.94T | 2T | 2.16T | 2.03T | 1.73T |
| Gross Margin % | 16.53% | 21.5% | 21.6% | 19.7% | 20.51% | 20.73% | 20.62% | 20.82% | 21.88% | 22.38% | 22.39% | 25.26% | 26.02% | 25.64% | 25.52% | 27.3% | 25.23% | 25.89% | 28.82% | 29.06% | 29.25% | 30.2% | 31.27% | 32.13% | 31.6% | 29.49% | 33.86% | 35.13% | 33.5% | 32.8% |
| Gross Profit Growth % | -18.09% | 5.71% | 32.43% | 11.62% | 9.3% | -11.32% | -6.9% | -1.57% | 7.25% | -4.14% | 2.32% | 3.68% | 21.66% | 24.86% | -16.87% | 12.73% | -16.48% | -24.87% | 7.05% | 11.22% | 10.87% | 2.46% | -0.29% | 10.24% | 19.58% | -2.93% | -7.56% | 6.78% | 16.93% | 34.06% |
| Operating Expenses | 4.26T | 3.45T | 3.03T | 2.55T | 2.11T | 2.07T | 2.45T | 2.58T | 2.53T | 2.29T | 2.77T | 2.33T | 2.09T | 1.99T | 1.8T | 1.87T | 1.8T | 2.4T | 2.5T | 2.37T | 2.03T | 1.98T | 1.95T | 1.87T | 1.7T | 1.53T | 1.59T | 1.62T | 1.56T | 1.33T |
| OpEx % of Revenue | 18.43% | 15.91% | 14.83% | 15.09% | 14.52% | 15.72% | 16.38% | 16.25% | 16.45% | 16.38% | 18.94% | 18.4% | 17.66% | 20.13% | 22.61% | 20.93% | 20.99% | 23.99% | 20.88% | 21.38% | 20.48% | 22.9% | 23.92% | 23.48% | 23.14% | 23.2% | 26.87% | 26.33% | 25.8% | 25.22% |
| Selling, General & Admin | 2.63T | 2.35T | 2.11T | 1.67T | 1.33T | 1.33T | 1.64T | 1.77T | 1.78T | 1.62T | 2.11T | 1.72T | 1.49T | 1.43T | 1.28T | 1.38T | 1.34T | 1.84T | 1.91T | 1.82T | 1.66T | 1.51T | 1.5T | 1.43T | 1.3T | 1.17T | 1.1T | 1.14T | 1.12T | 940.13B |
| SG&A % of Revenue | 11.36% | 10.84% | 10.31% | 9.88% | 9.12% | 10.11% | 10.99% | 11.17% | 11.56% | 11.59% | 14.44% | 13.6% | 12.61% | 14.45% | 16.07% | 15.47% | 15.59% | 18.37% | 15.98% | 16.4% | 16.72% | 17.49% | 18.42% | 18% | 17.75% | 17.74% | 18.57% | 18.47% | 18.48% | 17.81% |
| Research & Development | 1.63T | 1.1T | 923.63B | 880.91B | 787.06B | 738.89B | 804.12B | 806.9B | 751.86B | 691.43B | 656.5B | 606.16B | 598.37B | 560.27B | 519.82B | 487.59B | 463.35B | 563.2B | 586.3B | 551.87B | 510.36B | 467.96B | 448.5B | 436.26B | 394.21B | 359.12B | 323.35B | 307.86B | 288.01B | 250.48B |
| R&D % of Revenue | 7.07% | 5.07% | 4.52% | 5.21% | 5.41% | 5.61% | 5.39% | 5.08% | 4.89% | 4.94% | 4.5% | 4.79% | 5.05% | 5.67% | 6.54% | 5.46% | 5.4% | 5.63% | 4.9% | 4.98% | 5.15% | 5.41% | 5.5% | 5.48% | 5.37% | 5.46% | 5.48% | 5% | 4.76% | 4.74% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -21.39B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -99.71M | 117.82M | -138.06B | 0 | 0 | 117.97M | 1.73B | -51.2M | 166.63B | 175.52B | 154.49B | 140.99B |
| Operating Income | -439.33B | 1.21T | 1.38T | 780.77B | 871.23B | 660.21B | 633.64B | 726.37B | 833.56B | 840.71B | 503.38B | 670.6B | 823.86B | 544.81B | 231.36B | 569.77B | 363.77B | 189.64B | 950.34B | 851.96B | 868.76B | 631.17B | 599.56B | 688.49B | 662.29B | 414.22B | 412.59B | 542.05B | 465.78B | 400.41B |
| Operating Margin % | -1.9% | 5.59% | 6.76% | 4.62% | 5.99% | 5.01% | 4.24% | 4.57% | 5.43% | 6.01% | 3.45% | 5.3% | 6.96% | 5.52% | 2.91% | 6.38% | 4.24% | 1.89% | 7.94% | 7.68% | 8.77% | 7.29% | 7.35% | 8.65% | 9.02% | 6.3% | 6.99% | 8.81% | 7.71% | 7.58% |
| Operating Income Growth % | -136.2% | -12.19% | 77% | -10.38% | 31.96% | 4.19% | -12.77% | -12.86% | -0.85% | 67.01% | -24.94% | -18.6% | 51.22% | 135.48% | -59.39% | 56.63% | 91.82% | -80.04% | 11.55% | -1.93% | 37.64% | 5.27% | -12.92% | 3.96% | 59.89% | 0.39% | -23.88% | 16.38% | 16.33% | 176.83% |
| EBITDA | 942.53B | 1.96T | 2.18T | 1.5T | 2.35T | 2.09T | 2.1T | 2.2T | 2.29T | 2.18T | 1.16T | 1.3T | 1.41T | 1.14T | 762.12B | 1.13T | 993.45B | 827.29B | 1.47T | 1.22T | 1.13T | 857.01B | 812.76B | 909.1B | 856.74B | 587.6B | 579.22B | 717.57B | 620.27B | 541.39B |
| EBITDA Margin % | 4.08% | 9.02% | 10.65% | 8.89% | 16.14% | 15.83% | 14.03% | 13.82% | 14.89% | 15.55% | 7.97% | 10.25% | 11.92% | 11.49% | 9.59% | 12.68% | 11.58% | 8.26% | 12.26% | 11.03% | 11.42% | 9.9% | 9.97% | 11.42% | 11.67% | 8.93% | 9.81% | 11.66% | 10.26% | 10.25% |
| EBITDA Growth % | -51.82% | -10.11% | 44.86% | -36.02% | 12.6% | -0.46% | -4.56% | -4.05% | 5.08% | 87.02% | -10.17% | -8.23% | 24.37% | 48.96% | -32.76% | 14.09% | 20.09% | -43.62% | 19.93% | 8.17% | 31.97% | 5.44% | -10.6% | 6.11% | 45.8% | 1.45% | -19.28% | 15.69% | 14.57% | 100.13% |
| D&A (Non-Cash Add-back) | 1.38T | 742.86B | 794.37B | 721.63B | 1.48T | 1.43T | 1.46T | 1.47T | 1.45T | 1.34T | 660.71B | 625.23B | 588.13B | 590.47B | 530.76B | 563.64B | 629.67B | 637.64B | 516.9B | 371.49B | 262.24B | 225.83B | 213.2B | 220.61B | 194.45B | 173.38B | 166.63B | 175.52B | 154.49B | 140.99B |
| EBIT | -439.33B | 1.37T | 1.7T | 915.68B | 884.54B | 655.2B | 814.61B | 992.59B | 1.13T | 1.02T | 653.6B | 824.43B | 946.71B | 501.05B | 267.78B | 639.02B | 348.75B | 184.28B | 950.34B | 851.96B | 868.76B | 631.17B | 599.56B | 688.49B | 662.29B | 499.14B | 412.59B | 542.05B | 465.78B | 400.41B |
| Net Interest Income | 101.69B | 136.22B | 114.06B | 36.96B | 8.76B | 55.89M | 227.39M | 40.48B | 31.11B | 24.85B | 8.95B | 12.35B | 18.64B | -55.92B | 26.04B | 60.77B | -27.58B | 18.69B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 190.29B | 191.13B | 173.69B | 73.07B | 25.63B | 186.74M | 454.46M | 48.62B | 41.19B | 32.39B | 28.47B | 25.62B | 24.03B | 16.8B | 33.46B | 23.58B | 18.23B | 41.23B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 88.6B | 54.91B | 59.63B | 36.11B | 16.87B | 130.84M | 227.08M | 13.22B | 12.97B | 12.47B | 18.15B | 16.6B | 12.7B | 12.16B | 10.38B | 8.47B | 12.55B | 22.54B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 11.71B | 104.15B | 260.41B | 98.8B | 198.96B | 253.84B | 156.28B | 253B | 281.42B | 166.28B | 132.07B | 135.63B | 110.04B | -55.92B | 26.04B | 60.77B | -27.58B | -27.91B | -57.13B | -59.03B | -38.86B | 25.95B | 41.81B | -17.7B | -69.91B | 3.66B | 6.41B | -13.86B | -412.58M | 8.75B |
| Pretax Income | -427.62B | 1.32T | 1.64T | 879.57B | 1.07T | 914.05B | 789.92B | 979.38B | 1.11T | 1.01T | 635.45B | 806.24B | 933.9B | 488.89B | 257.4B | 630.55B | 336.2B | 161.73B | 893.21B | 792.93B | 814.5B | 657.12B | 641.37B | 670.8B | 552.24B | 418B | 419B | 528.19B | 465.36B | 409.16B |
| Pretax Margin % | -1.85% | 6.08% | 8.04% | 5.2% | 7.35% | 6.94% | 5.29% | 6.16% | 7.26% | 7.19% | 4.35% | 6.38% | 7.89% | 4.95% | 3.24% | 7.06% | 3.92% | 1.62% | 7.46% | 7.15% | 8.22% | 7.59% | 7.86% | 8.43% | 7.52% | 6.35% | 7.1% | 8.58% | 7.7% | 7.75% |
| Income Tax | -53.31B | 414.61B | 459.79B | 162.26B | 309.49B | 218.61B | 279.99B | 303.09B | -13.67B | 327.59B | 229.09B | 245.14B | 267.99B | 178.98B | 135.74B | 206.83B | 146.87B | 109.83B | 386.28B | 283.83B | 317.21B | 266.8B | 252.5B | 244.68B | 230.6B | 181.62B | 164.98B | 226.84B | 202.79B | 188.56B |
| Effective Tax Rate % | 12.47% | 31.47% | 28% | 18.45% | 28.92% | 23.92% | 35.44% | 30.95% | -1.23% | 32.53% | 36.05% | 30.41% | 28.7% | 36.61% | 52.73% | 32.8% | 43.69% | 67.91% | 43.25% | 35.79% | 38.95% | 40.6% | 39.37% | 36.48% | 41.76% | 43.45% | 39.37% | 42.95% | 43.58% | 46.08% |
| Net Income | -449.51B | 835.84B | 1.11T | 651.42B | 707.07B | 657.42B | 455.75B | 610.32B | 1.06T | 616.57B | 344.53B | 509.44B | 624.7B | 367.15B | 211.48B | 534.09B | 268.4B | 137B | 598.27B | 592.4B | 596.99B | 486.41B | 463.93B | 426.12B | 361.78B | 236.38B | 254.02B | 301.35B | 262.57B | 220.6B |
| Net Margin % | -1.94% | 3.85% | 5.42% | 3.85% | 4.86% | 4.99% | 3.05% | 3.84% | 6.9% | 4.4% | 2.36% | 4.03% | 5.28% | 3.72% | 2.66% | 5.98% | 3.13% | 1.37% | 5% | 5.34% | 6.03% | 5.62% | 5.69% | 5.35% | 4.93% | 3.59% | 4.3% | 4.9% | 4.34% | 4.18% |
| Net Income Growth % | -153.78% | -24.51% | 69.96% | -7.87% | 7.55% | 44.25% | -25.33% | -42.39% | 71.81% | 78.96% | -32.37% | -18.45% | 70.15% | 73.61% | -60.4% | 98.99% | 95.91% | -77.1% | 0.99% | -0.77% | 22.73% | 4.85% | 8.87% | 17.78% | 53.05% | -6.94% | -15.71% | 14.77% | 19.03% | 209.41% |
| Net Income (Continuing) | -374.31B | 903.03B | 1.18T | 717.31B | 760.7B | 695.44B | 509.93B | 676.29B | 1.13T | 679.39B | 406.36B | 561.1B | 665.91B | 309.92B | 121.67B | 423.72B | 282.61B | 51.9B | 508.4B | 509.02B | 512.72B | 401.7B | 463.93B | 426.12B | 363.24B | 236.33B | 254.02B | 301.35B | 262.57B | 220.6B |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 89.86B | 83.38B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 331.99B | 301.29B | 308.88B | 318.04B | 299.72B | 290.53B | 273.76B | 298.07B | 300.56B | 274.33B | 270.36B | 237.75B | 223.39B | 160.26B | 125.68B | 132.94B | 127.79B | 123.06B | 141.39B | 122.89B | 0 | 0 | 0 | 0 | 0 | 0 | 29.31B | 24.88B | 26.64B | 0 |
| EPS (Diluted) | -337.14 | 536.79 | 677.64 | 384.03 | 411.09 | 380.76 | 260.13 | 346.86 | 590.79 | 342.09 | 191.16 | 282.66 | 346.62 | 203.70 | 117.33 | 295.68 | 147.90 | 75.51 | 331.11 | 323.91 | 324.30 | 260.46 | 243.24 | 218.58 | 186.63 | 119.91 | 130.32 | 154.83 | 134.76 | 113.25 |
| EPS Growth % | -162.81% | -20.79% | 76.45% | -6.58% | 7.97% | 46.37% | -25% | -41.29% | 72.7% | 78.95% | -32.37% | -18.45% | 70.16% | 73.61% | -60.32% | 99.92% | 95.87% | -77.19% | 2.22% | -0.12% | 24.51% | 7.08% | 11.28% | 17.12% | 55.64% | -7.99% | -15.83% | 14.89% | 18.99% | 210.96% |
| EPS (Basic) | -337.14 | 536.79 | 677.64 | 384.03 | 411.09 | 380.76 | 260.13 | 346.86 | 590.79 | 342.09 | 191.16 | 282.66 | 346.62 | 203.70 | 117.33 | 295.68 | 147.90 | 75.51 | 331.11 | 323.91 | 324.30 | 260.46 | 243.24 | 218.58 | 186.63 | 119.91 | 130.32 | 154.83 | 134.76 | 113.25 |
| Diluted Shares Outstanding | 1.33B | 1.56B | 1.63B | 1.7B | 1.72B | 1.73B | 1.75B | 1.76B | 1.79B | 1.8B | 1.8B | 1.8B | 1.8B | 1.8B | 1.8B | 1.81B | 1.81B | 1.81B | 1.82B | 1.83B | 1.84B | 1.87B | 1.91B | 1.95B | 1.95B | 1.97B | 1.95B | 1.95B | 1.95B | 1.95B |
| Basic Shares Outstanding | 1.33B | 1.56B | 1.63B | 1.7B | 1.72B | 1.73B | 1.75B | 1.76B | 1.79B | 1.8B | 1.8B | 1.8B | 1.8B | 1.8B | 1.8B | 1.81B | 1.81B | 1.81B | 1.81B | 1.83B | 1.84B | 1.87B | 1.91B | 1.95B | 1.95B | 1.97B | 1.95B | 1.95B | 1.95B | 1.95B |
| Dividend Payout Ratio | - | 0.27% | 21.85% | 32.77% | 26.65% | 22.07% | 43.18% | 31.83% | 16.45% | 26.31% | 46.03% | 31.13% | 22.79% | 35.34% | 51.13% | 17.26% | 22.99% | 101.98% | 25.51% | 23.71% | 11.9% | 9.83% | 7.21% | 7.06% | 6.76% | 9.66% | 7.8% | 6.71% | 6.36% | 6.17% |
Margin compression and EV transition
According to the most recent quarterly financial data, Honda's revenue growth reached 10.6% in 2026Q4, yet this follows a period of stagnation where top-line figures hovered near 5.3 trillion yen, suggesting that volume gains are struggling to offset broader automotive market volatility and regional demand shifts.
While the 10.6% growth in the latest quarter appears positive, it masks a lack of consistent momentum observed over the preceding eight quarters. Investors should monitor whether this uptick represents a sustainable recovery in unit sales or merely a temporary fluctuation driven by pricing adjustments in the North American market.
As reported in the company's income statements, gross margins plummeted to 6.4% in 2026Q4 from a historical average exceeding 20%, indicating that the firm is facing severe cost pressures that have effectively neutralized its traditional pricing power in the competitive automotive and motorcycle segments.
The collapse in gross margin suggests that Honda is struggling to pass on rising raw material costs to consumers, potentially due to intense competition in the SUV and EV sectors. This contraction warrants further investigation into whether the company's manufacturing efficiency is being compromised by the ongoing transition to the 0 Series electric platform.
Based on the provided financial figures, R&D expenses surged to 646.5 billion yen in 2026Q4, representing a significant increase from the 200-300 billion yen range seen in previous periods, which highlights the heavy capital burden required to sustain the company's pivot toward software-defined electric vehicles.
The sharp rise in R&D spending, coupled with elevated SG&A costs, suggests that Honda is entering a high-investment phase that may continue to suppress operating income in the near term. Management's ability to balance these necessary innovation costs with operational discipline will be critical to restoring profitability.
Data from the latest income statement reveals a negative operating margin of -17.3% in 2026Q4, a stark departure from the positive margins maintained in prior quarters, which raises significant questions regarding the underlying health of the core automotive business and its ability to weather current market conditions.
Short-sellers may focus on this dramatic shift as evidence that Honda's hybrid-first strategy is failing to provide the necessary buffer against the high costs of EV development. The transition from a profitable entity to one reporting substantial operating losses suggests that the company's cost structure may be fundamentally misaligned with current global demand.
Quick answers to the most common questions about buying HMC stock.
For fiscal year 2026, Honda Motor Co., Ltd. (HMC) reported total revenue of $23.11T. This represents a 337.7% increase compared to $5.28T in 1997.
Honda Motor Co., Ltd. (HMC) reported a net loss of $449.51B for the fiscal year ending 2026.
Honda Motor Co., Ltd. (HMC) reported an operating income of $-439334.3M, resulting in an operating profit margin of -1.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Honda Motor Co., Ltd. (HMC) generated $3.82T in gross profit for the year, representing a gross profit margin of 16.5%. This demonstrates the company's core pricing power and production efficiency.