Weekly · Daily New
By Kosaku Narioka Toyota Motor raised its annual earnings forecast after reporting higher quarterly operating profit thanks to a weaker yen and cost cuts. The Japanese carmaker said Thursday that net profit fell 19% from a year earlier to 759.4 billion yen, equivalent to $4.79 billion, for the three months ended September. That missed the estimate of Y779.6 billion in a poll of analysts by data provider Quick.
The year-earlier bottom line was helped by higher nonoperating income. Operating profit climbed 34% to Y1.128 trillion thanks to a weaker yen and cost reduction despite disruptions caused by the Middle East conflict. Revenue grew 8.6% to Y13.437 trillion despite lower vehicle sales volume.
For the fiscal year ending March 2027, it projected net profit to drop 7.2% to Y3.570 billion, an improvement from its earlier view of Y3.250 trillion. Toyota trimmed its annual group vehicle sales projection to 10.99 million units from 11.18 million units forecast previously. Shares of Toyota surged as much as 15% after the results.
The stock was already up strongly ahead of earnings, buoyed by lower oil prices and hopes for an early end to the Middle East conflict following the U.S. midterm elections. The Japanese automaker has taken measures to mitigate the impact of disruptions caused by the Iran war. It has been establishing alternative routes to shorten the time it takes to deliver vehicles to customers in the Middle East.
The carmaker has also been taking steps to expand production capacity in the U.S. after it announced a plan last 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. The Japanese carmaker has been hit by the Trump administration's tariffs. 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 yen's sharp depreciation in recent years has helped boost earnings for Japanese exporters, including Toyota, by making shipments more competitive abroad and boosting the value of profits earned overseas in yen terms. The yen depreciated about 28% against the dollar over the past five years. Write to Kosaku Narioka at kosaku.narioka@wsj.com (END) Dow Jones Newswires November 05, 2026 01:18 ET (06:18 GMT) Copyright (c) 2026 Dow Jones & Company, Inc.
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