Toyota Motor (7203) Q4 2026 earnings summary

Executive summary

• FY2026 operating income was JPY 3.8 trillion, down JPY 1.0 trillion year-over-year, but maintained through higher vehicle sales and price revisions despite a JPY 1.4 trillion impact from U.S. tariffs.

• Consolidated vehicle sales for FY2026 reached 9.6 million units, with electrified vehicle sales exceeding 5 million units for the first time and BEV sales up 68.4%.

• Dividend for FY2026 set at JPY 95 per share, up JPY 5 year-on-year; FY2027 forecasted at JPY 100 per share.

• The company is accelerating mid- to long-term business structure transformation to ensure sustainable growth and resilience to environmental changes.

• Comprehensive income surged 36.4% to JPY 5,515.7 billion, reflecting strong other comprehensive income gains.

Financial highlights

• FY2026 sales revenue: JPY 50,684.9 billion, up 5.5% year-over-year; operating income: JPY 3,766.2 billion (7.4% margin); net income: JPY 3,848 billion (7.6% margin).

• Operating income declined by JPY 1,029.3 billion year-on-year, mainly due to U.S. tariffs (JPY 1.38 trillion impact), higher R&D, labor, and material costs.

• FY2027 forecast: sales revenue JPY 51 trillion (+0.6%), operating income JPY 3 trillion, net income JPY 3 trillion.

• Earnings per share dropped to JPY 295.25 from JPY 359.56 year-over-year.

• Cash and cash equivalents at year-end increased 40.9% to JPY 12,659.6 billion.

Outlook and guidance

• FY2027 operating income is forecast at JPY 3.0 trillion, a year-on-year decrease of JPY 800 billion, mainly due to Middle East impacts and persistent cost inflation.

• FY2027 vehicle sales forecast at 9.6 million units, maintaining previous year’s level; electrified vehicle sales expected to reach approximately 6 million units and 56.7% of total sales.

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

• Dividend per share forecast to rise to JPY 100, up JPY 5 year-on-year.

• Cost reforms and productivity initiatives are being implemented to counter rising break-even volumes and U.S. tariff impacts.