Toyota Raises 2026 Profit and Sales Forecasts Despite US Tariffs

Toyota Motor Corporation has raised its profit and sales forecasts for the fiscal year ending in March 2026. This is significant, especially given the challenges posed by rising costs and U.S. import tariffs.

In its revised outlook, Toyota now expects a net profit of ¥3.57 trillion (approximately $22.8 billion), a big jump from its earlier estimate of ¥2.93 trillion.

The forecast for operating profit is now ¥3.8 trillion (about $24.3 billion), which is higher than the previous estimate of ¥3.4 trillion. Total sales are projected to reach around ¥50 trillion, representing an approximate 4 percent increase compared to last year.

Toyota acknowledged the “negative impact of U.S. tariffs that newly arose this fiscal year” but said that cost reduction and targeted marketing efforts have helped mitigate losses, enabling a narrower profit decline than earlier anticipated.

While other global automakers face similar issues, Toyota’s diverse production network and strong demand for hybrids have softened some of the tariff impacts.

Industry analysts point out that Toyota’s record sales in 2025, with global volumes nearing 11 million units, highlight the company’s strength and adaptability. The strong demand for hybrids and electrified vehicles continues to drive growth.

Toyota also announced a management change, with Chief Financial Officer Kenta Kon set to become CEO on April 1. The company believes this will speed up its strategic decisions in a rapidly changing industry.

Overall, Toyota’s latest forecast revisions send a careful but positive message to investors. Even with the challenges from tariffs and a tough global environment, the world’s largest automaker can still achieve sales growth and protect its profits.