SUBARU's revenue rose to ¥1.25tn in the quarter to June 2026, from ¥1.21tn a year earlier, but operating profit fell ¥33.8bn to ¥42.6bn. The company's presentation to analysts on 5 August 2026 called this steady progress toward an unchanged full-year target of ¥150.0bn. The gap between rising sales and shrinking profit is the real story of the quarter.
| Metric | Q1, year to March 2026 | Q1, year to March 2027 | Change |
|---|---|---|---|
| Revenue | ¥1.21tn | ¥1.25tn | +¥36.8bn |
| Operating profit | ¥76.4bn | ¥42.6bn | -¥33.8bn |
| Pre-tax profit | ¥78.5bn | ¥61.4bn | -¥17.0bn |
| Net profit (parent) | ¥54.8bn | ¥49.2bn | -¥5.7bn |
| Average USD/JPY rate | ¥146 | ¥159 | +¥13 |
Two forces pulled in the profit's favor
SUBARU said a cut in the US auto tariff rate reduced the tariff burden on its business by ¥32.9bn compared with the prior run rate. The yen also weakened, averaging ¥159 per dollar in the quarter versus ¥146 a year earlier, a shift the company lists among the quarter's exchange-rate effects.
And two pulled the other way
Working against those gains, SUBARU said deteriorating raw-material and market conditions cut ¥17.0bn from operating profit, and sales incentives rose ¥24.9bn year-on-year. The presentation's detailed profit-bridge chart lists several further swings, including higher manufacturing fixed costs, but does not reduce cleanly to a single net figure in the material reviewed here, so this account sticks to the items SUBARU flagged as standalone headline points.
Sales down, especially in the US
Consolidated vehicle sales fell to 220,000 units from 244,000 a year earlier, with the US market driving most of the decline, to 150,000 units from 171,000. Domestic production in Japan fell by 35,000 units to 118,000, from 152,000, while output at SUBARU's Indiana plant edged up to 95,000 from 94,000. Within the business, the automotive segment's operating profit fell to ¥40.1bn from ¥74.1bn, while the smaller aerospace segment improved to ¥0.6bn from ¥0.3bn on higher revenue.
Two bets beyond the showroom
SUBARU confirmed two moves aimed at production flexibility and future revenue. Mixed-line production of battery-electric and combustion-engine vehicles will begin shortly at the company's Yajima plant, intended to let the plant shift output toward whichever model sells rather than being locked into one production mix. Separately, SUBARU plans to enter the auto sales financing business in North America by around 2030, offering customer loans and leases plus retailer floor-plan financing, part of a push to grow revenue from sources beyond new-car sales.
Guidance unchanged
Full-year targets are unchanged: revenue of ¥5.2tn, operating profit of ¥150.0bn, pre-tax profit of ¥180.0bn and net profit attributable to shareholders of ¥130.0bn, based on an assumed rate of ¥155 per dollar for the year to March 2027. SUBARU flagged raw-material and market conditions as the lingering risk to that target: prices eased briefly around June before reversing, and the company said volatile markets and geopolitical uncertainty continue to cloud the outlook.