Toyota Motor (7203) Q4 2026 earnings summary

Executive summary

• FY2026 operating income was JPY 3,766.2 billion, down JPY 1,029.3 billion year-on-year, with higher vehicle sales and price revisions partly offsetting U.S. tariffs and cost pressures.

• FY2027 operating income is forecast at JPY 3 trillion, down JPY 800 billion, mainly reflecting Middle East impacts and persistent cost inflation.

• FY2026 consolidated vehicle sales reached 9.595 million units; electrified vehicle sales exceeded 5 million for the first time.

• Mid- to long-term business transformation is intended to support sustainable growth and resilience.

Financial highlights

• FY2026 sales revenue was JPY 50,684.9 billion, up JPY 2,648.2 billion year-on-year; operating margin was 7.4%, down from 10.0%.

• Net income attributable to shareholders was JPY 3,848.0 billion, down JPY 916.9 billion year-on-year; net margin fell to 7.6% from 9.9%.

• U.S. tariffs reduced operating income by JPY 1.38 trillion; higher R&D, labor and material costs also weighed on results.

• FY2027 forecast: sales revenue JPY 51 trillion and net income JPY 3 trillion.

Outlook and guidance

• FY2027 vehicle sales are forecast at 9.6 million units, maintaining the prior-year level; electrified vehicles are forecast at 56.7% of total sales, with BEV sales more than doubling.

• FY2027 dividend per share is forecast at JPY 100, up JPY 5 year-on-year.

• Foreign exchange assumptions: JPY 150/USD and JPY 180/EUR.