By Obinna Uballa
Toyota has raised its profit and revenue projections for the fiscal year ending March 2026, citing solid sales and aggressive cost controls that helped cushion the impact of newly imposed United States tariffs.
The Japanese automaker said on Friday that although the tariffs increased operating expenses during the year, internal efficiency measures and sustained market demand reduced the overall hit to earnings.
Toyota now expects net profit of 3.57 trillion yen (about $22.8 billion), up from its earlier estimate of 2.93 trillion yen. Operating profit is forecast to reach 3.8 trillion yen, compared with the previous projection of 3.4 trillion yen.
Full-year sales are also expected to rise to 50 trillion yen, slightly above the earlier forecast of 49 trillion yen.
Despite the improved outlook, Toyota reported that profits fell in the September – December quarter even as sales rose, with higher tariff-related costs weighing on margins.
The company recently posted record global sales for 2025, maintaining its position as the world’s largest automaker and widening the gap with Volkswagen.
This growth came despite flat performance in China, a critical market where Toyota faces intensifying competition from domestic brands, particularly electric vehicle leader BYD.
In the US, Toyota’s sales climbed eight per cent despite a 25 per cent tariff on Japanese auto exports between April and mid-September, before a reduced 15 per cent ceiling took effect.
