Toyota Motor Corp. saw a significant jump in first-quarter net profit, even though overall vehicle sales dipped. On Tuesday, the company revealed that its net profit climbed to 1.477 trillion yen, marking a 75.6% increase from the 841.35 billion yen recorded in the same period a year ago. This also translates to a rise in profit per share to 120.69 yen from 64.56 yen in the previous year. On the other hand, operating income fell to 1.06 trillion yen for the quarter, a decline of 8.8% compared to 1.17 trillion yen from the prior year period.
Revised Outlook for Fiscal 2027
Looking ahead, Toyota has improved its financial forecast for the full fiscal year 2027. The company now anticipates attributable profit to reach 3.25 trillion yen and operating income to hit 3.40 trillion yen. Previously, it had predicted attributable profit of 3 trillion yen, which was already a 22% drop from fiscal 2026. This updated projection represents a slight increase in expected profitability, reflecting Toyota's efforts to adapt to changing conditions.
According to the company, this upward revision is driven by improvements in the external business environment and the development of new logistics channels, especially to the Middle East. Sales revenue for the year is now expected to grow to 54 trillion yen, surpassing the earlier projection of 51 trillion yen and marking a 6.5% increase compared to the previous fiscal year.
Buybacks and Share Decline
Toyota also unveiled a new share repurchase plan, authorizing the buyback of up to 1 trillion yen in shares through open market purchases. As part of this plan, 200 million shares will be retired, accounting for 1.37% of the total issued shares. This move is intended to boost shareholder value while streamlining the company's equity structure.
Despite the better-than-expected first-quarter results, Toyota's stock declined in Tokyo, falling by 1.91% to a price of 2,907.00 yen per share. Meanwhile, the impact of the 2026 Kumamoto Earthquake is still being evaluated, and any associated costs or disruptions have not yet been factored into the company’s projections.
Looking at the full year, Toyota now expects vehicle sales to reach 9.70 million units. This is an increase from the earlier projection of 9.60 million and slightly higher than the 9.595 million units sold in the previous year. The revised forecast highlights Toyota's confidence in maintaining a strong presence in the global market.
For the first quarter, sales revenue rose 10.4% year-over-year to 13.525 trillion yen from 12.253 trillion yen. While vehicle sales dipped slightly to 2.395 million units from 2.411 million in the same period last year, the company's overall financial performance reflects strong adaptability in a challenging market.