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Toyota Shares Jump on Raised Profit Forecast

Toyota's shares surged after it raised its full-year profit forecast on a weak yen and strong hybrid sales, though the new target is still below analyst expectations and Japanese exporters rallied more broadly.

Toyota Motor (NYSE: TM) shares jumped today after the world’s largest carmaker raised its full-year profit forecast. The company, which sells Toyota and Lexus vehicles, did trim its revenue forecast slightly, but sales guidance was not cut. Its Tokyo shares rose more than 15%, AFP reported.

The US-listed ADR, a certificate representing Toyota shares, traded at $218.43 at 3.55pm London time, up 9.5% from yesterday’s close of $199.46. That is an intraday quote rather than a close, and it sits above every close since early August, the highest of which was $199.87 on the 3rd of September.

Toyota lifted its net profit forecast for the year to March 2027 to 3.57tn yen from 3.25tn yen, and its operating profit forecast to 3.9tn yen from 3.4tn yen. Its vehicle sales forecast stayed at 9.7m. The only reduction was to revenue, slightly lowered to 53.5tn yen, still 5.6% higher than a year earlier.

Second-quarter net profit fell to 759.4bn yen from 932bn yen a year earlier, yet the shares rose regardless. The dollar was about 158 yen against 154 a year earlier, and a weaker yen makes overseas sales worth more once converted back. Strong US demand for hybrids, cars combining a petrol engine and a battery, also helped.

Toyota said that recovery work at production sites and optimised global supply had mitigated rising materials prices and disruption from earthquakes and floods.

Line chart of Toyota ADR daily closing price from August to November 2026, jumping on 5 November
Toyota’s US-listed shares were trading above every close since early August on Thursday (the 5 November point is a 3.55pm London quote, not a close).

The new forecast is still below analyst expectations surveyed by Bloomberg, and implies net profit falling 7.2% from last year’s 3.8tn yen.

Part of the jump is also sector-wide. Japanese exporters rallied on hopes of US tariff relief after the Democrats’ midterm wins, with Honda up more than 7% and Sony about 7%.

China remains a risk. Vehicle sales there were down 23% year on year in August, and Toyota acknowledged a “challenging competitive environment”.

Asktraders News Team
Asktraders News Team
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The AskTraders Analyst Team features experts in technical and fundamental analysis, as well as traders specializing in stocks, forex, and cryptocurrency.

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