Toyota Raises FY2026 Profit Forecast to Record High, Unveils 1 Trillion Yen Buyback

Toyota Motor released its latest results on August 4, raising its net profit and operating profit forecasts for the fiscal year ending March 2027 (FY2026). The net profit forecast was raised from 3 trillion yen to 3.25 trillion yen, and the operating profit forecast from 3 trillion yen to 3.4 trillion yen. The sales forecast was raised from 51 trillion yen to 54 trillion yen, a record high. Meanwhile, citing strong demand in North America and Europe, the company raised its annual shipment target by 100,000 vehicles to 9.7 million. The upward revision was supported by yen depreciation, dollar appreciation, and strong hybrid vehicle sales. The exchange rate assumption was adjusted from 150 yen per dollar to 160 yen per dollar. However, earnings fell for a fifth consecutive quarter, weighed by declining sales in China and rising raw material and parts costs due to the Iran war. Operating profit for the April-June quarter fell 9% to 1.06 trillion yen. The company maintained its forecast of a third consecutive year of profit decline. The impact of the Kumamoto earthquake is still under detailed investigation and has not been reflected in the above forecasts. In addition, Toyota announced a share buyback plan of 1 trillion yen.