Toyota Raises Profit Forecast and Announces 1 Trillion Yen Buyback

Toyota Motor Corporation raised its net income forecast for the fiscal year ending March 31, 2027, to 3.25 trillion yen, up from a May projection of 3.0 trillion yen. The automaker attributed the increase to foreign exchange assumptions and marketing efforts, including the development of alternative logistics routes to the Middle East. Despite the upgrade, Toyota expects an overall profit decline of 15.5% compared to the 3.8 trillion yen earned in the previous fiscal year.

For the first quarter ending June 30, the company reported a 75.6% surge in net income to approximately 1.5 trillion yen and a 10.4% increase in revenue to 13.5 trillion yen. This net income jump was largely driven by a one-off gain from the privatization of Toyota Industries. However, operating income for the quarter fell 8.8% to 1.06 trillion yen, which the company cited as a result of supply chain and sales disruptions caused by conflict in the Middle East.

To leverage strong cash levels and improve capital efficiency, Toyota announced a 1 trillion yen share buyback. The company also raised its full-year guidance for operating income to 3.40 trillion yen and sales revenue to 54.0 trillion yen, citing strong demand for hybrid vehicles in Japan and North America.