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Nippon Steel Swings to Surprise Profit, Beating Forecasts but Lagging Prior Year

Story Highlights
  • Nippon Steel’s 2026 fiscal revenue slightly topped forecasts as business profit and net result beat guidance, with a surprise ¥17.1 billion profit replacing the loss previously projected.
  • Cost cuts plus inventory and forex gains from rising raw material prices and a weaker yen drove the upside, though earnings remained far below last year, signaling ongoing margin pressure.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Nippon Steel Swings to Surprise Profit, Beating Forecasts but Lagging Prior Year

Meet Samuel – Your Personal Investing Prophet

NIPPON STEEL ( (JP:5401) ) has shared an update.

Nippon Steel reported consolidated revenue of ¥10.06 trillion for the fiscal year ended March 31, 2026, slightly above its prior forecast, while business profit beat expectations by more than 22% and profit attributable to owners of the parent swung from a projected loss to a ¥17.1 billion gain. Despite this upside against guidance, profit was sharply lower than the previous year’s level, reflecting a challenging environment for the steel industry.

The earnings beat was driven by improved profitability from cost reductions as well as inventory valuation and foreign exchange gains linked to higher raw material prices and a weaker yen, underscoring management’s ability to cushion external headwinds. The surprise return to profit versus earlier loss projections may reassure investors about the company’s operational resilience, even as the steep year-on-year profit decline highlights ongoing pressure on margins and the need for continued efficiency efforts.

The most recent analyst rating on (JP:5401) stock is a Sell with a Yen470.00 price target. To see the full list of analyst forecasts on NIPPON STEEL stock, see the JP:5401 Stock Forecast page.

More about NIPPON STEEL

Nippon Steel Corporation is a leading Japanese steelmaker listed on the Tokyo, Nagoya, Fukuoka and Sapporo exchanges, producing steel products for a wide range of industrial and infrastructure applications. The company’s performance is closely tied to raw material prices, currency movements and global demand for steel, factors that can significantly influence its profitability and competitiveness.

Average Trading Volume: 31,239,646

Technical Sentiment Signal: Hold

Current Market Cap: Yen2989.5B

Find detailed analytics on 5401 stock on TipRanks’ Stock Analysis page.

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