Toyota net profit surges 76% on hybrid sales, lifts outlook

Toyota Motor reported a 76% surge in first-quarter net profit to ¥1.48 trillion, beating analyst estimates, and raised its annual earnings forecasts.

The company attributed the results to increased hybrid electric-vehicle sales and a weaker yen, which boosted overseas earnings when converted back into yen, according to its earnings statement Tuesday.

Net profit for the three months ended June 30 came to ¥1.48 trillion ($9.42 billion), up from ¥841.3 billion a year earlier and well above the ¥978.49 billion consensus in a Quick poll of analysts. Revenue climbed 10.4% to ¥13.52 trillion, while operating income slipped 8.8% to ¥1.06 trillion, hit by supply-chain disruptions tied to the Middle East conflict. The bottom line was also lifted by a one-time gain from the privatization of Toyota Industries.

Metric	Actual	Consensus	Beat/Miss
Net profit	¥1.48T	¥978.49B	+51%
Revenue	¥13.52T	—	+10.4% YoY
Operating income	¥1.06T	—	-8.8% YoY

Toyota raised its operating income forecast for the fiscal year ending March 2027 to ¥3.40 trillion from roughly ¥3.0 trillion, and lifted its revenue outlook to ¥54.0 trillion from ¥51.0 trillion. It also unveiled a ¥1 trillion ($6.4 billion) share buyback, citing its strong cash position. Shares fell 1.2% Tuesday, underperforming the Nikkei 225, which declined 0.6%.

The automaker maintained its group vehicle sales forecast of 11.18 million units for the fiscal year, with North America and Japan expected to remain the strongest markets. Hybrid vehicles continue to drive growth as consumers seek more fuel-efficient options, the company said, even as fully electric rivals such as Tesla push into the segment.

The yen's depreciation to multi-decade lows during the quarter supported margins alongside cost-cutting initiatives, offsetting the drag from geopolitical disruptions. The results contrast with rival Nissan, which posted its first quarterly profit in two years in the same period, showing the divergent fortunes of Japan's two largest automakers as hybrid demand outpaces fully electric vehicles.

The guidance raise points to management's expectation that hybrid demand and currency tailwinds will persist through the fiscal year. Investors will watch Toyota's next earnings release for updated segment margins and any further impact from Middle East supply-chain disruptions.

This article is for informational purposes only and does not constitute investment advice.