Toyota Nearly Doubles Fiscal First-Quarter Net Profit to ¥1.48 Trillion on Cheap Yen and Hybrid Demand

Release summary: Toyota Motor Corp. nearly doubled its net profit for the first quarter of the fiscal year ending in March 2027, to 1.48 trillion yen ($9.4 billion), as solid demand in the United States and India combined with a cheap yen to boost results. For the full fiscal year the company projects net profit of 3.25 trillion yen ($20.6 billion). The results were announced on August 4, 2026.

TOKYO, August 4, 2026 — Toyota Motor Corp., the Japanese automaker that makes the Prius hybrid and Lexus luxury models, recorded a net profit of 1.48 trillion yen ($9.4 billion) for the April–June period, up from 841 billion yen in the same quarter the previous year, the company reported Tuesday. Quarterly sales rose 10% year on year to 13.5 trillion yen ($85 billion).

A cheap yen lifts profit

A cheap yen raises the value of overseas earnings for Japan’s giant exporters like Toyota Motor Corp. The U.S. dollar was trading at about 145 yen during the fiscal first quarter in 2025, but at about 160 yen for the same period this year. The dollar is now trading at about 158 yen because of a joint U.S.–Japan market intervention, which came last week, or in the fiscal second quarter.

The favorable currency effect added 345 billion yen ($2.2 billion) to Toyota’s operating profit in the April–June period, and the automaker is figuring the yen at 160 to the dollar for the full fiscal year.

Sales volumes and demand for the models

Chief Officer Takanori Azuma said Toyota sold fewer vehicles globally for the quarter just ended. Key points of the announcement:

• Global vehicle sales for April–June: 2.39 million units, compared with 2.41 million vehicles a year ago.
• Full-fiscal-year sales target: 9.7 million vehicles, compared with 9.595 million the previous fiscal year.
• Demand remains strong for Toyota hybrids in various global markets, including the U.S., where the Camry mid-size sedan and the RAV4 compact sport utility vehicle are selling briskly.
• In India, the Urban Cruiser and the Innova Hycross were among the popular models, while the Yaris remained a strong seller in Thailand and Europe.
• Toyota plans to boost hybrid and hybrid battery production through 2030 while bringing down costs; electric vehicle sales are also going strong, Azuma said.

Full-year forecast

• Net profit for the full fiscal year through March 2027 is projected at 3.25 trillion yen ($20.6 billion) — not as good as the 3.85 trillion yen ($24 billion) racked up the previous fiscal year.
• Annual sales are forecast at 54 trillion yen ($342 billion), better than the 50.7 trillion yen for the previous fiscal year that ended in March.
• Toyota shares fell nearly 2% in Tokyo trading after the earnings results were announced.

Risks: the Middle East and the Kumamoto earthquake

The recent political instability in the Middle East has weighed on Japanese automakers, which rely heavily on the now effectively closed Strait of Hormuz for shipping. Toyota said it was working on tackling such challenges, including finding alternative routes.

Another potential negative impact was the 7.1 magnitude earthquake in Kumamoto in southwestern Japan, which hit July 28. Toyota’s manufacturing facilities in the Kyushu region, where Kumamoto is located, halted production but are readying to resume production later this week. Its Tahara plant in Aichi Prefecture, central Japan, also halted production, partly because of the quake; since a summer break is upcoming, unrelated to the disaster, production there will be down through the end of the month.

Company and contacts

Toyota Motor Corp.

Contacts: corporate communications of Toyota Motor Corp.; the results were presented by Chief Officer Takanori Azuma, as cited by The Associated Press in the source article. The source published no phone or e-mail contacts.

Website: https://global.toyota/