The Japanese automaker now expects a net profit of ¥3.57 trillion (about $22.8 billion) for the year ending March 31, 2026, up from its earlier projection of ¥2.93 trillion.
Operating profit is forecast to reach ¥3.8 trillion, compared with the prior estimate of ¥3.4 trillion. Sales revenue is projected at ¥50 trillion, slightly higher than earlier expectations.
Toyota acknowledged the negative impact of new U.S. tariffs on its earnings this fiscal year. Despite this, the company said it has “reduced the extent of the profit decline by implementing cost reductions and marketing efforts.”
The “tariff impact” was cited as a factor that increased expenses during the September–December quarter, resulting in lower net and operating profits for that period, even as sales rose. Toyota emphasised that its broader efforts helped offset some of these headwinds.
Last year Toyota achieved record global vehicle sales, retaining its status as the world’s top-selling automaker. The strong sales performance helped support the revised forecasts despite pressure in some markets.
In conjunction with the forecast update, Toyota announced that Kenta Kon, its current finance chief, will become CEO effective April 1. The move is aimed at accelerating decision-making amid shifting global conditions and evolving market challenges.
Toyota’s sales trajectory shows resilience amid international tariff pressures. U.S. sales rose eight percent despite a 25 percent tariff on Japanese auto exports during part of the year. The company also faces strong competition in markets such as China, where sales remained flat even as global demand grew.
