Subaru’s Q1 FY26 operating profits fell 16.2% to 76.4 billion yen ($517 million) due to U.S. tariffs impacting revenue. Despite this, sales rose by 25,000 units YoY to 171,000 driven by Forester and Crosstrek. Subaru targets 200 billion yen ($1.35 billion) operating profits for FY26, a 50% YoY decrease.

The U.S., accounting for over 70% of Subaru’s sales, remains a key market. The recently negotiated tariff deal with the U.S. has eased some uncertainties, but significant impacts persist. To achieve profit targets, Subaru plans to increase production, sales mix, and cost-cutting measures.

Subaru remains committed to the U.S., though it shifted production of 2,000 units from the U.S. to Japan to offset Canadian duties. The automaker is developing a plan to adapt to changing business conditions and will release more details later. Subaru aims for sustainable growth through strategic investments in Japan and the U.S.

Read more at Yahoo Finance: Subaru forecasts a 50% profit decline for FY2026