Nissan shares surged nearly 9% Friday after the automaker reported a surprise third-quarter operating profit, reversing a prior loss and prompting a significant upgrade from Macquarie. The Japanese automaker posted revenue of 2.99 trillion yen, down 5% year-on-year but exceeding quarterly growth expectations. Gross profit of 387 billion yen delivered a 12.9% margin, above analyst forecasts.

Most notably, Nissan swung to an operating profit of 18 billion yen from a loss in the previous quarter, beating Visible Alpha projections that had anticipated an operating loss. Macquarie analyst James Hong credited the beat to favorable foreign exchange movements, improved sales performance, and a one-time gain. The company's automotive segment still reported a 74 billion yen operating loss, but this was more than offset by 75 billion yen in financing income.

Despite guiding to a 650 billion yen net loss for fiscal 2026 due to restructuring charges, Nissan narrowed its operating loss forecast to 60 billion yen from 275 billion yen previously. Hong upgraded Nissan to Neutral from Underperform and raised the price target by 60% to 400 yen, stating that restructuring efforts are ahead of schedule with 160 billion yen in fixed cost cuts and 240 billion yen in variable cost savings already achieved.