Toyota Motor Corporation

For fiscal year ended March 2026, Toyota reported sales revenues of JPY 50,684.9 billion, operating income of JPY 3,766.2 billion, income before income taxes of JPY 5,152.9 billion, and net income of JPY 3,848 billion. Consolidated vehicle sales were 9,595,000 units, or 102.5% year-on-year, and Toyota/Lexus vehicle sales were 10,477,000 units, or 102.0% year-on-year. Electrified vehicle sales exceeded 5 million units for the first time. Management said U.S. tariffs were a JPY 1.38 trillion impact and operating income fell by JPY 1,029.3 billion year-on-year. For fiscal year ending March 2027, Toyota guided to sales revenues of JPY 51 trillion, operating income of JPY 3 trillion, income before taxes of JPY 4,230 billion, and net income of JPY 3 trillion. It also forecast consolidated vehicle sales of 9.6 million units and Toyota/Lexus sales of 10.5 million units, with hybrid sales expected to exceed 5 million units and total electrified vehicle sales around 6 million units.

Kenta Kon said his first months visiting gemba reinforced Toyota’s strengths in kaizen, problem solving, and frontline manufacturing, but also showed significant room to improve administrative work and remove non-value-added tasks. He framed his mission as building an environment where more people can create ever-better cars while continuing growth investments rather than reverting to volume-at-all-costs behavior. His tone was serious but steady: Toyota should keep accelerating, fix waste, and support long-term growth through both carmaking and broader mobility efforts.

Yoichi Miyazaki emphasized that the business environment remains extremely uncertain and said the FY27 operating income decline for a third straight year is something he takes very seriously. He pointed to a 3-year need to offset rising materials costs and growth investments with cost reductions and value chain profit, while noting that U.S. tariffs and the Middle East situation have not been fully absorbed. He also said Toyota aims to improve breakeven volume, grow value chain revenue by about JPY 150 billion per year, and ultimately move toward an ROE of 20% through a more stable business structure and capital optimization.

Analysts pressed management on FY27 assumptions, breakeven volume, North America losses, tariffs, BEV plans, and whether Toyota can improve earnings power without sacrificing product quality. Management said the FY27 Middle East assumption includes JPY 270 billion from lower sales volume and about JPY 400 billion from inflated material costs, while tariff impact of JPY 1.38 trillion is still built into the forecast and will be addressed with suppliers and through local production/local procurement. On BEVs, Toyota said growth will come mainly from China, Europe, and North America, but reiterated that its multi-pathway strategy remains to offer customers what they want, including BEVs where demand exists.