Toyota on Friday raised its profit and sales forecasts for the current fiscal year, saying cost-cutting measures and marketing efforts helped offset the impact of U.S. tariffs.
The Japanese automaker now expects a net profit of 3.57 trillion yen ($22.8 billion) for the year ending March 2026, up from a previous forecast of 2.93 trillion yen. Operating profit is projected at 3.8 trillion yen, up from 3.4 trillion yen, while sales are expected to reach 50 trillion yen, compared with an earlier projection of 49 trillion yen.
Despite the upward revision for the fiscal year, Toyota said net and operating profit fell in the September-December quarter, even as sales rose, due largely to the “tariff impact” that increased expenses.
The company reported last month that global sales reached a record high in 2025, helping Toyota maintain its position as the world’s top automaker and widen its lead over German rival Volkswagen.
The overall growth came despite flat sales in China, where Toyota faces rising competition from local automakers, including electric-vehicle leader BYD. U.S. sales rose 8% despite a 25% tariff on Japanese auto exports imposed by Washington between April and mid-September, later reduced to a 15% cap.
