Why did Yamaha Motor cut net profit guidance so sharply?

The company plans to reverse a ¥32.5 billion deferred tax asset, which is a non-cash accounting item linked to higher U.S. tariff costs. This reduces reported net profit to ¥16.5 billion for FY2025. Operating profit guidance was actually raised, so the headline decline mainly reflects tax effects rather than core demand.

What is the new dividend outlook for Yamaha Motor?

Management cut the annual dividend forecast to ¥35 from ¥50. At around ¥1,047.5, that implies a forward yield near 3.3%. The reduction likely reflects a cautious stance while tariff-related costs and tax impacts weigh on earnings. The payout could change again if conditions improve.

How did the market react to the update?

Shares fell 9.97% to ¥1,047.5 on heavy volume of 34.7 million, far above the 7.16 million average. The price is below the 50-day and 200-day averages and even under lower volatility bands, signaling stress. The 52-week low at ¥962.8 is the next notable technical reference.

What should I watch at the next earnings report?

Focus on free cash flow, margins by segment, pricing actions to offset U.S. tariffs, and the tax line following the deferred tax asset reversal. Any update to the dividend plan or capital allocation will also matter. Results are scheduled for 2026-02-13 at 06:30 UTC.

Is Yamaha Motor stock attractive at current levels?

Valuation near 1.0 times book offers support, and operating guidance was nudged up. However, lower reported earnings and a reduced dividend weigh on the near-term case. Our stance is HOLD while we wait for clearer visibility on tariff costs, cash generation, and capital returns.

Global Market Insights

7272.T Stock Today: Net Profit Slashed, Dividend Cut – February 03

ByDanny Kontos February 3, 2026February 3, 2026

Yamaha Motor stock fell after the company cut FY2025 net profit guidance by 63% to ¥16.5 billion and lowered its annual dividend forecast to ¥35 from ¥50. Management cited a ¥32.5 billion reversal of a deferred tax asset tied to higher U.S. tariffs. While operating profit guidance was raised to ¥126 billion, headline earnings and the payout reset weighed on sentiment. Shares of 7272.T traded sharply lower as investors reassessed near-term returns and risk around tariff costs and tax effects.