Toyota raised its annual profit outlook after a mixed quarter: net income fell year over year from July through September, while revenue increased and demand for its vehicles remained resilient.

The Japanese automaker now expects net income of 3.57 trillion yen for the fiscal year ending March 2027, up from its previous estimate of 3.25 trillion yen. It also lifted its operating income forecast to 3.9 trillion yen from 3.4 trillion yen, citing improved operations, lower tariff costs and stronger hybrid sales.

Quarterly profit fell as sales revenue grew

Toyota reported July–September net income of 759.4 billion yen, down from 932 billion yen a year earlier. Quarterly revenue rose to about 13.4 trillion yen from 12.4 trillion yen. For the first half of the fiscal year, the company sold about 4.76 million vehicles, slightly fewer than in the same period last year.

Reuters reported that Toyota’s operating income for the quarter rose 34%, supported by hybrid demand and a weaker yen. The company’s results also reflect pressure from U.S. tariffs, material costs and disruptions to supply. Toyota said sales of models including the RAV4 hybrid and Camry remained strong in the United States.

Hybrids remain central to Toyota’s outlook

The forecast increase points to Toyota’s ability to keep earnings growing while competing in a fast-changing auto market. Its annual profit target remains below the 3.8 trillion yen recorded in the previous fiscal year, and the company expects to sell 9.7 million vehicles globally this year.

Sources: Associated Press; Reuters; Toyota Motor Corporation.