Toyota raises FY2027 profit forecast to ¥3.9 trillion

Toyota Motor (NYSE:TM) reported fiscal second-quarter 2027 operating profit of ¥1.128 trillion for July–September 2026, up 34% year over year and above the ¥992 billion analyst estimate.

Revenue increased 8.6% to ¥13.437 trillion from ¥12.377 trillion, while net profit declined 19% to ¥759.4 billion from ¥932.0 billion, partly reflecting higher costs and changes in non-operating income.

The company attributed its improved operating performance partly to a weaker Japanese yen, hybrid vehicle demand and cost-reduction efforts, which helped offset tariffs, higher material costs and supply disruptions.

Toyota raised its FY2027 operating profit forecast by 15% to ¥3.9 trillion from ¥3.4 trillion and its net profit forecast to ¥3.57 trillion from ¥3.25 trillion, while reducing its annual revenue forecast to ¥53.5 trillion from ¥54 trillion.

The company also increased its interim dividend to ¥50 per share, forecast a full-year dividend of ¥100 and raised its share repurchase authorization by ¥300 billion to ¥1.3 trillion.

Following the announcement, Tokyo-listed shares rose approximately 17%.

Toyota manufactures passenger vehicles, commercial vehicles and hybrid and electric vehicles, with major markets across Japan, North America, Europe and Asia.

Its strategy includes expanding hybrid vehicle production, reducing manufacturing costs, strengthening regional supply chains and investing in research, capital projects and robotics as it competes with established automakers and Chinese electric vehicle manufacturers.