Toyota posts massive profit jump on strong car sales and weak yen

Toyota Motor Corp. reported a fiscal first-quarter net profit of 1.48 trillion yen ($9.4 billion) on August 4, 2026, nearly doubling its 841 billion yen profit from the same period a year earlier. The Japanese automaker attributed the surge to robust demand in the U.S. and India, a weaker yen boosting overseas earnings, and a 10% year-on-year increase in quarterly sales to 13.5 trillion yen ($85 billion). The yen’s depreciation added 345 billion yen ($2.2 billion) to Toyota’s operating profit during the April-June period, with the dollar trading at around 160 yen compared to 145 yen in the prior-year quarter. Toyota expects the yen to average 160 to the dollar for the full fiscal year. Despite selling 2.39 million vehicles globally in the quarter—slightly down from 2.41 million a year ago—the automaker raised its full-year sales forecast to 9.7 million vehicles, up from 9.595 million previously. Chief Officer Takanori Azuma highlighted strong hybrid demand, particularly for models like the Camry midsize sedan and RAV4 compact SUV in the U.S., as well as the Urban Cruiser and Innova Hycross in India. Toyota also noted strong EV sales and plans to expand hybrid and hybrid battery production through 2030 while reducing costs. The company is navigating challenges such as Middle East shipping disruptions due to political instability and the impact of a 7.1-magnitude earthquake in Kumamoto on July 28, which temporarily halted production at several plants, including facilities in Kyushu and Aichi Prefecture. Toyota expects full-year net profit to reach 3.25 trillion yen ($20.6 billion), down from 3.85 trillion yen ($24 billion) in the prior fiscal year, with annual sales projected at 54 trillion yen ($342 billion), an increase from 50.7 trillion yen. Toyota’s shares fell nearly 2% in Tokyo trading following the earnings announcement.