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Toyota Raises Full-Year Outlook as Tariffs Hammer Quarterly Profit

Higher volumes help Toyota cushion tariff costs.

Overview

  • Toyota logged 450 billion yen in second-quarter tariff costs and raised its full-year tariff estimate to 1.45 trillion yen from 1.40 trillion.
  • Operating income fell 27.4% to 839.5 billion yen for the quarter due to tariff charges and foreign-exchange headwinds.
  • The company lifted its FY26 guidance to 49 trillion yen in revenue and 3.4 trillion yen in operating income on stronger demand.
  • Operating margin declined to about 6.8%, and shares rose roughly 2% after the report.
  • To limit duties, Toyota is increasing North American production and reiterated ongoing U.S. investment as it did not confirm President Trump’s $10 billion claim.