Toyota lifts FY2027 forecast, 1 trillion yen buyback

Toyota Motor Corporation raised its full-year profit forecast on Tuesday, August 4, 2026, citing a significantly weaker yen and improved logistics, despite reporting a fifth consecutive quarterly decline in operating earnings. The world's largest automaker now expects operating income of 3.4 trillion yen ($21.6 billion) for the fiscal year ending March 31, 2027, a 13% increase from its previous forecast of 3.0 trillion yen.

For the April-June quarter, Toyota's operating profit fell 8.8% to 1.06 trillion yen ($6.7 billion), slightly below analyst expectations. The company attributed the quarterly decline to slumping sales in key overseas markets and disruptions linked to the ongoing conflict in the Middle East, which have increased costs for raw materials and parts. Global vehicle sales for Toyota and its Lexus brand fell 3.5% during the quarter.

Sales in China, the world's largest car market, plunged 28%, while sales in the Middle East dropped by approximately one-third. The company noted that the impact of the Middle East conflict on its earnings this fiscal year is now estimated at 510 billion yen, revised down from a previous forecast of 670 billion yen. Toyota stated it has...