Toyota Motor Corporation reported an 8.2% increase in global revenues to JPY 12,377.4 billion in the second quarter of the current fiscal year (FY26), between July and September, while operating income fell by 27% to JPY 839.5 billion, resulting in its operating margin falling to 6.8% from 10.1% a year earlier.
In the first half of FY26, between April and September 2025, global revenues rose by 5.7% to JPY 24,630.7 billion. Toyota and Lexus-branded vehicle sales rose by 5% to 4.783 million units, driven mainly by a 14% increase in North American sales to 1.533 million units, while sales in Japan increased by just over 3% to 970,000 units and in Europe by just under 5% to 573,000 units.
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Operating profits deteriorated significantly in the second quarter, resulting in an almost 19% drop to JPY 2,005.6.1 billion in the first half of the financial year after an 11% decline in the first quarter, which the company blamed mainly on the impact of US import tariffs. First-half operating margin fell to 7.2% from 8.2% a year earlier, while net income fell by 7% to JPY 1,773.4 billion.
Toyota slightly increased its full fiscal year (FY26) global revenue forecast to JPY49.0 trillion, from JPY 48.5 trillion in the previous quarter, while leaving its full-year Toyota and Lexus sales forecasts unchanged at 9.8 million units. The company’s full-year operating income forecast was increased to JPY 3.4 trillion from JPY 3.2 trillion, while the net income forecast was raised to JPY 2.93 trillion from JPY 2.66 trillion.
Consolidated retail sales, including its Daihatsu and Hino subsidiaries, are now forecast to reach 11.3 million units in the current fiscal year, up from its previous forecast of 11.2 million.
Toyota said in a statement: “Despite the impact of US tariffs, strong demand supported by product competitiveness has led to increased sales volumes mainly in Japan and North America and expanded value chain profits,” adding “we are steadily translating comprehensive future investments into improved productivity and increased returns, with a strong focus on improving the breakeven volume.”
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