Toyota has revised upward its profit and revenue forecasts for the fiscal year ending March 2026, saying stronger sales performance and internal cost-saving measures helped soften the blow from newly introduced US tariffs.
The Japanese automaker said on Friday that while the tariffs had increased expenses during the year, efforts to cut costs and sustain market momentum reduced the scale of the anticipated profit impact.
Toyota now expects net profit of 3.57 trillion yen (approximately $22.8 billion), an improvement on its earlier estimate of 2.93 trillion yen. Operating profit is projected at 3.8 trillion yen, up from 3.4 trillion yen previously forecast.
Sales for the year are also expected to reach 50 trillion yen, slightly higher than the earlier projection of 49 trillion yen.
However, the company noted that profits declined in the September–December quarter despite higher sales, citing the tariff-related rise in operating costs as a key factor.
Toyota recently reported record global sales for 2025, helping it retain its ranking as the world’s largest carmaker and extend its lead over Volkswagen.
Growth was recorded even as sales in China remained flat, where Toyota continues to face stiff competition from domestic manufacturers, especially electric vehicle producer BYD.
In the US market, Toyota’s sales rose by eight per cent despite a 25 per cent tariff imposed on Japanese auto exports between April and mid-September, after which a reduced 15 per cent cap took effect.
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