Toyota Motor Corporation reported a 43% plunge in net profits to JPY 1.26 trillion (US$ 8 billion) in the third quarter of the current fiscal year (FY26), between October and December 2025, down from JPY 2.19 trillion a year earlier, which the company blamed on the introduction last year of import tariffs in the US. Revenues rose by 8.6% to JPY 13.46 trillion (US$ 86 billion).

Toyota also announced that its current CEO and president, Koji Sato, will step down at the beginning of the next fiscal year, in April 2026, to be replaced by the current chief financial officer, Kenta Kon, subject to shareholder approval at the company’s annual general meeting (AGM) in June.

In the first nine months of FY26, between April and December 2025, global revenues rose by 6.8% to JPY 38.1 trillion. Global vehicle sales, including the Toyota, Lexus, Hino and Daihatsu brands, increased by 3.8% to 8.607 million units, with sales in Japan rising by 4.3% to 1.516 million units, while sales in North America rose by 13.5% to 2.318 million units, Asia (outside Japan) 1.325 million units (-3.8%), and Europe 881,000 units (+2%).

Operating profits declined by 13.1% to JPY 3.2 trillion in the first nine months of the current financial year, while net income fell by 23% to JPY 3.144 trillion.

Toyota further increased its full fiscal year (FY26) global revenue forecast to JPY 50 trillion, from JPY 49 trillion in the previous quarter, while leaving its full-year vehicle sales forecast unchanged at 11.3 million units. The company’s full-year operating income forecast was increased to JPY 3.8 trillion from JPY 3.4 trillion, representing a 21% decline on the previous year, while the net income forecast was raised to JPY 3.57 trillion from JPY 2.93 trillion.

Regarding its latest nine-month financial results, Toyota said in a statement: “Despite the JPY 1.45 trillion negative impact of US tariffs, we have reduced the extent of the profit decline by implementing cost reductions and marketing efforts.” The automaker said it has introduced “company-wide initiatives aimed at reducing the break-even volume, strengthening its earnings power for medium- to long-term competitiveness. Together with suppliers, we will increase productivity to generate resources for growth and protect Japanese manufacturing.”