Toyota Shares Dip As FY2026 Operating Profit Outlook Cut

Toyota Motor (NYSE: TM) lowered its full-year operating profit forecast by 16% today, citing the financial toll of steep U.S. import tariffs, higher material costs, and a stronger yen. Toyota shares in Tokyo (TYO: 7203) ended the day 1.51% lower, with the NYSE listed stock down 1.41% in the pre-market.

The world’s largest carmaker now expects operating profit for the fiscal year ending March 2026 to reach ¥3.2 trillion, down from a previous projection of ¥3.8 trillion.

It also estimated the full-year impact of U.S. auto tariffs at ¥1.4 trillion, significantly higher than its earlier ¥180 billion estimate for just April and May.

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For the April to June quarter, Toyota reported an operating profit of ¥1.17 trillion, down from ¥1.31 trillion a year earlier. While lower year-over-year, the result beat the LSEG compiled analysts’ average forecast of ¥902 billion.

Toyota’s North American business recorded an operating loss of ¥63.6 billion in the first quarter, reversing a ¥100.7 billion profit from the same period last year. The company said it absorbed a ¥450 billion hit from the new tariffs during the quarter.

Despite the challenges, Toyota noted that strong vehicle sales, cost-cutting, and value chain gains helped cushion the blow. The firm said it remains committed to ongoing investment and productivity gains across its supply chain.