Toyota Motor Corporation released its Q2 2026 earnings, reporting consolidated sales revenue of JPY 24,630.7 billion, a 5% year‑over‑year increase driven by a 4.7% rise in Toyota and Lexus vehicle sales and a 46.9% share of electrified vehicles. The 5% growth reflects strong demand in North America and China, where hybrid electric vehicle sales outpaced legacy models.
Operating income for the quarter reached JPY 2.0 trillion, up from JPY 1.8 trillion in the same period last year. The lift is largely attributable to higher vehicle mix and improved cost discipline, offsetting a JPY 1.45 trillion negative impact from U.S. tariffs. Net income rose to JPY 1.773 billion, reflecting a 3% margin expansion.
Toyota raised its full‑year 2026 operating income forecast to JPY 3.4 trillion from the previous guidance of JPY 3.2 trillion, signaling confidence in sustained demand for electrified models and successful tariff mitigation. The company also increased its interim dividend to JPY 45 per share and projected a full‑year dividend of JPY 95 per share, underscoring a commitment to shareholder returns.
Management highlighted the launch of the new Century brand and the Software‑Defined Vehicle strategy, with the RAV4 as the first SDV model. CFO Kenta Kon emphasized that the company’s “strategic investments in high‑margin electrified and software platforms are delivering measurable returns, while cost‑control initiatives keep operating margins healthy.”
Analysts noted that Toyota’s earnings beat expectations by JPY 0.24 trillion per share, driven by stronger‑than‑anticipated vehicle sales and disciplined cost management. The company’s guidance, coupled with a robust electrified vehicle mix, positions Toyota to navigate ongoing U.S. tariff headwinds while maintaining growth momentum.
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