Toyota Motor (7203) Q2 2026 earnings summary

Executive summary

• Operating income for the first half of FY2026 was JPY 2,005.6 billion, down 18.6% year-over-year, mainly due to U.S. tariffs, but strong demand in Japan and North America supported sales volume and value chain profits.

• Sales revenues increased by 5.8% to JPY 24,630.7 billion, with consolidated vehicle sales rising 5.0% year-over-year to 4,783,000 units.

• Net income attributable to shareholders fell 7.0% year-over-year to JPY 1,773.4 billion.

• The company is focused on building a resilient profit structure, translating investments into productivity and returns, and maintaining stable dividend increases.

• Interim dividend raised to JPY 45 per share, with a full-year forecast of JPY 95 per share.

Financial highlights

• Sales revenues for the first half were JPY 24,630.7 billion, operating income JPY 2,005.6 billion, and net income JPY 1,773.4 billion.

• Earnings per share (basic) was JPY 136.07, down from JPY 142.15 year-over-year.

• Comprehensive income reached JPY 2,348.1 billion, up 45.5% year-over-year.

• Electrified vehicles accounted for 46.9% of sales, led by strong hybrid demand in North America and China.

• Hybrid vehicle sales reached 4.46 million units this year, up 200,000 from last year.

Outlook and guidance

• Full-year FY2026 forecasts: sales revenues of JPY 49 trillion, operating income of JPY 3.4 trillion, and net income of JPY 2.93 trillion.

• Earnings per share forecast is JPY 224.81.

• Full-year consolidated vehicle sales forecast at 9,800,000 units, with Toyota Lexus vehicle sales forecast revised upward to 10.5 million units.

• Forecast reflects a JPY 1.45 trillion full-year negative impact from U.S. tariffs, with improvement efforts expected to yield a positive JPY 0.9 trillion impact.

• Forex assumptions: JPY 146 per USD and JPY 169 per EUR.