Toyota Motor Corp. announced on February 6, 2026, that it is raising its full-year profit and sales forecasts for the fiscal year ending March 31, citing aggressive cost-cutting and a massive surge in hybrid demand. The Japanese automaker now expects to reach a historic sales milestone of ¥50 trillion, making it the first company in Japan to target such a figure.
This optimistic revision comes even as the company braces for a staggering ¥1.45 trillion ($9.3 billion) negative impact on its operating profit due to ongoing U.S. import tariffs.
The updated financial outlook projects a net profit of ¥3.57 trillion, up from a previous estimate of ¥2.93 trillion. Operating profit expectations were also hiked to ¥3.8 trillion, outperforming analyst expectations despite the trade headwinds.
Toyota executives noted that while the 15% to 25% duties on Japanese exports have significantly increased expenses, the company has successfully offset these costs through internal efficiencies and marketing efforts. By absorbing much of the tariff burden rather than passing it directly to buyers, Toyota has managed to maintain its competitive edge in the North American market.
Central to this resilience is the continued global shift toward gas-electric hybrids. Toyota reported that electrified vehicles now account for nearly 47% of its total sales volume, with demand for hybrid models like the Prius and RAV4 remaining exceptionally high in the United States and China. This hybrid-heavy strategy has allowed the company to sidestep the volatility seen in the fully electric vehicle sector.
To further insulate itself from future trade shocks, Toyota is committing ¥1.5 trillion to expand its U.S. manufacturing footprint, specifically focusing on localized hybrid engine production in plants across Kentucky and North Carolina.
The company is also benefiting from a favorable currency environment, as a weaker yen has boosted the value of its overseas earnings. While rivals like Nissan and Mazda have faced net losses or sharp profit declines due to their high dependence on exports, Toyota’s massive scale and diversified production base have allowed it to weather the current “new normal” of the tariff landscape.
Chairman Akio Toyoda emphasized that the company’s ability to raise forecasts during a period of geopolitical friction proves the success of its multi-pathway approach to electrification and trade.
