Toyota raises guidance as first quarter net income jumps 75.6%

Toyota raises guidance as first quarter net income jumps 75.6%

Tue, August 4, 2026 at 7:23 PM GMT+3 2 min read

• TM +1.93%

Japan's Toyota Motor posted a 75.6% increase in net income to Y1.47tn ($9.32bn) for the first quarter of its 2027 financial year and raised its FY2027 guidance.

During the three months to 30 June 2026, consolidated sales revenue reached Y13.52tn, an increase of 10.4% compared with the same period a year earlier.

The rise in net income came despite a fall in operating income which dropped 8.8% to Y1.06tn.

The increase in net profit was driven mainly by below-operating-line gains, including the disposal of part of Toyota's holding in Toyota Industries Corporation and the deconsolidation of Hino Motors, rather than by core operating earnings.

Toyota attributed the quarterly movement in operating income to several offsetting factors: a Y70bn contribution from marketing activity and a Y345bn benefit from currency movements, set against reductions of Y85bn linked to cost-cutting measures, Y190bn from higher expenses net of expense-reduction efforts, and Y242.6bn attributed to other factors.

Basic earnings per share attributable to Toyota Motor stood at Y120.69, against Y64.56 in the equivalent quarter of the prior year.

Total vehicle unit sales across Japan and overseas markets fell 0.7% to 2.39 million units for the quarter.

Domestic sales increased 8.9% to 524,000 units, while sales outside Japan fell 3.1% to 1.87 million units.

Within the automotive segment, sales revenue climbed 8.8% to Y12.01tn, but segment operating income fell 21% to Y719.92bn, which the company said was mainly the result of higher expenses.

By region, sales revenue increased across every market Toyota reported.

Japan rose 11.8% to Y5.82tn, North America increased 14.9% to Y6.10tn, Europe grew 20.4% to Y1.88tn, and Asia rose 9.5% to Y2.33tn.

The company raised its FY2027 operating income forecast to Y3.40tn from Y3tn previously.

It also increased its sales revenue forecast to Y54tn from Y51tn and lifted its net income attributable to Toyota Motor forecast to Y3.25tn from Y3tn

As part of business structure reform, Toyota said it is expanding hybrid electric vehicle battery production and plans to transition approximately 600,000 vehicles' worth of capacity to next-generation batteries in 2027-2028.

It also outlined production changes including Tacoma production at its Texas plant from 2030, construction of a fourth plant in India with capacity of 100,000 units a year, and supplying the Land Cruiser "FJ", Noah and Voxy to Japan from overseas production sites.

"Toyota raises guidance as first quarter net income jumps 75.6%" was originally created and published by Just Auto, a GlobalData owned brand.