While its June-quarter results topped estimates, operating profit dropped 11% year on year, with the company ascribing 450 billion yen in losses to U.S. tariffs. Net income attributable to the company fell 37% to 841.3 billion yen.

Toyota revised down its full-year operating income forecast by 600 billion yen to 3.2 trillion yen for its financial year ending in March 2026.

While profit fell, Toyota has seen strong global demand and the automaker last week reported record worldwide sales in the first half of the year.
Japanese carmakers have been hit by U.S. President Donald Trump’s 25% tariffs on imported vehicles, which came into effect in April.
In June, the value of Japan car exports to the U.S. fell 25.3% year over year, even though car export volumes to the U.S. rose by 4.6% in the same period, according to data from Japan’s trade ministry.
In light of the Japan-U.S. agreement, Toyota said it was expecting a full financial year impact of 1.4 trillion yen on profits.

Here are Toyota’s results compared with the mean estimates from LSEG:
✅ Revenue: 12.25 trillion Japanese yen ($83.4 billion) vs. 12.19 trillion yen
✅ Operating profit: 1.17 trillion yen vs. 881.41 billion yen