Why is Honda Motor stock sliding today?

Honda Motor stock fell 4.7% to ¥1,766.5 on Wednesday after the company’s fiscal second-quarter earnings release delivered a guidance upgrade that fell short of what analysts had anticipated.

While management raised its full-year operating profit forecast to 780 billion yen from 650 billion yen and lifted its net profit outlook by 25% to 500 billion yen, the revised target remained below the QUICK Consensus average estimate of roughly 585 billion yen held by 16 analysts — a shortfall that proved more influential than the upgrade itself.

Compounding the disappointment, Honda’s standalone Q2 results were notably weak: net profit collapsed 42.8% year-on-year to ¥65.8 billion and operating profit fell 39% to ¥118 billion, both well below analyst expectations.

The company absorbed approximately 484.8 billion yen in EV-related restructuring charges during the quarter alone, part of a broader strategic retreat from battery-electric vehicles toward hybrids. Analysts also noted that because first-half profit already exceeded the full-year guidance figure, the implicit outlook for the second half pointed to a net loss — adding a layer of caution to an otherwise upbeat headline number.

The broader market environment offered little cushion. Japanese automaker peer Suzuki Motor recently cut its own full-year profit forecast the previous day, citing rising raw material costs, which weighed on sector sentiment heading into today’s session. The Nikkei 225 rose 0.8% on Wednesday, but remained volatile in recent weeks following a sharp early-November selloff tied to global macro uncertainty.