Shares of Nissan Motor Co. surged Monday, posting the biggest rise in over two months after the automaker lifted its earnings outlook. Investors greeted the shift from a projected loss to a modest profit forecast, sparking a rally that lifted the stock by several percent on the Tokyo Stock Exchange. The move averts what would have been the first annual operating loss in five years.

The revised guidance reflects Nissan’s recent cost‑cutting measures and a softer market than analysts feared. By steering clear of a loss, the company preserves its dividend credibility and steadies cash flow, reassuring creditors and suppliers. Market participants see the update as a sign that Nissan can navigate supply‑chain strains without sacrificing profitability and a modest pricing strategy.

Traders responded quickly, pushing Nissan’s share price above key technical thresholds and prompting a re‑rating by several broker houses. The rally also lifts the broader Japanese auto sector, which has been under pressure from weak domestic demand. With the profit outlook now in place, Nissan can focus on its electrification roadmap for its upcoming models without the distraction of a looming loss.