Research
Research Alert: Toyota Reports Decline In Fy 26 Profit As Tariffs Weigh
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:Toyota Motor posted 5.5% revenue growth to JPY50.7T in FY 26 (Mar.) with 2.5% higher vehicle sales to 9.6M units, but operating income fell 21.5% to JPY3.77T as a JPY1.38T U.S. tariff impact overwhelmed volume gains. North America swung to a JPY192.5B loss while Japan profit contracted 26.3%, though financial services provided a bright spot with 24.6% income growth to JPY851.7B. The company forecasts another steep profit decline for FY 27 to JPY3.0T operating income on JPY51.0T revenue, as JPY670B in new Middle East headwinds cannot be fully absorbed. Despite compressed earnings, Toyota raised the FY 26 dividend to JPY95 per share and plans JPY100 for FY 27, with flexible share repurchases without pre-set limits. CFO Miyazaki acknowledged three consecutive years of declining operating profit and emphasized accelerating business transformation into a mobility company through production reorganization, cost reduction, and expanding value-chain revenues, targeting ultimately a 20% ROE.
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