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Subaru Profit Plunges Despite Steady Sales as FY2026 Outlook Is Cut

Story Highlights
  • Subaru’s nine-month profits fell sharply despite flat revenue, heavily compressing margins.
  • The automaker cut its full-year earnings forecast and integrated ten Japan sales subsidiaries to streamline operations.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Subaru Profit Plunges Despite Steady Sales as FY2026 Outlook Is Cut

Meet Samuel – Your Personal Investing Prophet

The latest update is out from SUBARU ( (JP:7270) ).

Subaru reported nine-month revenue to December 31, 2025 of ¥3.52 trillion, essentially flat year-on-year, but saw operating profit plunge 82% to ¥66.3 billion and profit attributable to owners fall 73.8% to ¥83.1 billion, sharply compressing margins and earnings per share. Despite the profit slump, equity attributable to owners remained robust at ¥2.75 trillion, with an equity ratio of 52.5%, and the company maintained its annual dividend forecast of ¥115 per share, including a higher interim payout of ¥57, signaling continued shareholder returns. For the full year to March 31, 2026, Subaru cut its earnings outlook, now expecting revenue of ¥4.8 trillion but forecasting steep year-on-year declines in operating profit (down 67.9%) and net profit (down 63.0%), highlighting sustained profit pressure; it also streamlined its domestic dealer network by integrating ten regional sales subsidiaries, potentially improving efficiency but temporarily reducing the scope of consolidation.

The most recent analyst rating on (JP:7270) stock is a Buy with a Yen4800.00 price target. To see the full list of analyst forecasts on SUBARU stock, see the JP:7270 Stock Forecast page.

More about SUBARU

Subaru Corporation is a Japan-based automaker listed on the Tokyo Stock Exchange, best known for its Subaru-branded passenger vehicles featuring all-wheel drive and boxer engines. The company operates globally, with a strong focus on the North American market, and reports its financials under IFRS, reflecting its scale as an international automotive manufacturer.

Average Trading Volume: 3,008,290

Technical Sentiment Signal: Buy

Current Market Cap: Yen2525.1B

See more insights into 7270 stock on TipRanks’ Stock Analysis page.

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