Toyota Motor has raised its FY2027 operating income forecast to Y3.9tn ($24.69bn) after reporting higher quarterly operating profit.

Under its revised consolidated outlook for the fiscal year ending 31 March 2027, the Japanese car maker lifted its operating income target from an earlier Y3.4tn, even as projected full-year sales revenue was trimmed from Y54tn to Y53.5tn.

The pre-tax profit projection was raised from Y4.57tn to Y4.96tn, and net income attributable to Toyota was upgraded from Y3.25tn to Y3.57tn.

Full-year consolidated vehicle volume guidance remains at 9.7 million units, while the total retail sales projection was revised downwards from 11.18 million to 10.99 million units.

Toyota attributed the profit upgrade to ongoing operational enhancements, value chain expansion, and lower tariff-related expenses, which helped counter rising material costs alongside flood and earthquake disruptions.

The updated full-year forecast assumes foreign exchange rates of Y157 to the US dollar (compared with Y160 in the previous guidance) and Y182 to the euro (compared with Y181 previously).

For the first half ended 30 September 2026, consolidated sales revenue grew 9.5% to Y26.96tn.

Operating income rose 9.2% to Y2.19tn, whilst pre-tax profit increased 19.2% to Y2.95tn from Y2.48tn.

First-half net income grew 24.9% to Y2.31tn, and attributable net income climbed 26.1% to Y2.24tn from Y1.77tn, generating basic and diluted earnings per share of Y185.97 compared with Y136.07.

Geographically, Japan recorded sales revenue of Y11.75tn and operating income of Y1.25tn.

North American revenue reached Y11.92tn, with operating profit of Y166.19bn reversing a previous Y67.86bn loss.

Revenue reached Y3.76tn in Europe, Y4.68tn in Asia, and Y2.66tn across other regions.

Automotive sales revenue rose 8.5% to Y23.98tn.

First-half consolidated deliveries fell 0.5% to 4,758,000 units. Electrified vehicle retail sales increased 14.2% to 2,811,000 units.

During the second quarter, Toyota’s sales revenue rose to Y13.44tn from Y12.38tn, while operating income increased to Y1.13tn from Y839.5bn.

Net income attributable to Toyota Motor fell to Y759.4bn from Y932bn, while consolidated vehicle sales declined to 2.364 million units from 2.372 million.