Toyota Net Profit Surges 76%, Boosts Earnings Outlook

By Ronnie Harui and Kosaku Narioka

Toyota Motor reported a 76% surge in first-quarter net profit on tailwinds including increased sales of hybrid electric-vehicle sales, and raised its annual earnings forecasts.

The Japanese carmaker said Tuesday that net profit was 1.48 trillion yen, equivalent to $9.42 billion, for the three months ended June, up sharply from Y841.3 billion a year earlier. That far exceeded the Y978.49 billion estimate in a poll of analysts by data provider Quick.

Revenue increased 10% to Y13.53 trillion in the first quarter.

For the year ending March 2027, Toyota Motor forecast consolidated revenue of Y54.00 trillion and net profit of Y3.25 trillion. It previously projected revenue of Y51.00 trillion and net profit of Y3.00 trillion.

Toyota maintained its group vehicle sales forecast of 11.18 million units for the fiscal year.

The Japanese carmaker has been taking steps to expand production capacity in the U.S. after it announced a plan in November to invest up to $10 billion in the country over the next five years.

Toyota said in July it would spend $3.6 billion to bring production of its top-selling midsize pickup, the Tacoma, back to the U.S. by 2030. The company plans to build a second assembly line for the Tacoma at its San Antonio plant. Toyota currently builds the Tacoma in Mexico.

Making more vehicles in the U.S. will help Toyota, the world's top-selling automaker, defray a hefty tariff bill in its largest market.

The carmaker has been hit by the Trump administration's levies. Japanese autos are subject to a 15% tariff following a trade deal struck with Tokyo in July last year.

The yen's sharp depreciation in recent years has helped boost earnings for Japanese exporters, including Toyota, by making exports more competitive overseas and increasing the value of profits earned abroad in yen terms. The yen depreciated about 15% against the dollar over the past four years.

The stock has fallen 12% this year through Monday, weighed by concerns about higher energy prices and weaker consumer sentiment due to the Iran war.

Write to Ronnie Harui at ronnie.harui@wsj.com and Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

August 04, 2026 02:02 ET (06:02 GMT)