Toyota Motor (7203) Q4 2026 earnings summary

Executive summary

• FY2026 operating income was JPY 3.8 trillion, down JPY 1.0 trillion YoY, maintained through higher vehicle sales and price revisions despite a JPY 1.4 trillion U.S. tariff impact.

• Consolidated vehicle sales for FY2026 reached 9,595,000 units (up 2.5% YoY), with electrified vehicle sales exceeding 5 million units for the first time and BEV sales up 68.4%.

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

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

• The company is accelerating business structure transformation for sustainable growth and resilience.

Financial highlights

• FY2026 sales revenue: JPY 50,684.9 billion (up 5.5% YoY); 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 YoY due to U.S. tariffs (JPY 1.38 trillion impact), FX fluctuations, and higher costs.

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

• R&D expenses reached a record high, focusing on BEVs, hydrogen, Woven City, and autonomous driving.

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

Outlook and guidance

• FY2027 vehicle sales forecast: 9.6 million units (100.1% YoY), with electrified vehicle sales expected to reach 6 million units and BEV sales to more than double.

• Operating income expected to decline for the third consecutive year, with cost reforms and productivity initiatives underway.

• Dividend policy remains focused on stable, continuous increases; share buybacks to be implemented flexibly.