Toyota Motor Corporation reported a 43% drop in net profit to JPY 1.26 trillion (US$8 billion) in the third quarter of the current fiscal year (FY26) between October and December 2025, down from JPY 2.19 trillion a year earlier, which the company blamed on the introduction of US import tariffs last year. Revenue rose 8.6% to JPY 13.46 trillion (US$86 billion).

Toyota also announced that its current CEO and president, Koji Sato, will step down at the start of the next fiscal year, in April 2026, to be replaced by current CFO Kenta Kon, subject to shareholder approval at the company’s annual general meeting (AGM) in June.

In the first nine months of FY26, between April and December 2025, global revenue rose 6.8% to JPY 38.1 trillion. Global vehicle sales, including the Toyota, Lexus, Hino and Daihatsu brands, rose 3.8% to 8.607 billion units, sales in Japan rose 4.3% to 1.516 billion units, while sales in North America rose 13.5% to 2.318 billion units, Asia (outside Japan) 1.3.38 million units, (-2.35%) and -2.38 million units. 881,000 units (+2%).

Operating profit fell 13.1% to JPY 3.2 trillion in the first nine months of the current fiscal year, while net income fell 23% to JPY 3.144 trillion.

Toyota further raised its full-year (FY26) global revenue forecast to JPY50 trillion from JPY49 trillion in the previous quarter, while leaving its full-year vehicle sales forecast unchanged at 11.3 million units. The company’s full-year operating income forecast was increased to JPY 3.8 trillion from JPY 3.4 trillion, representing a 21% decline from a year earlier, while net income forecast was raised to JPY 3.57 trillion from JPY 2.93 trillion.

Regarding its latest nine-month financial results, Toyota said in a statement: “Despite the negative impact of JPY 1.45 trillion from US tariffs, we reduced the scope of the profit decline by implementing cost reductions and marketing efforts.” The automaker said it has introduced “company-wide initiatives aimed at reducing breakeven volume, strengthening its earnings power for mid- and long-term competitiveness. Together with suppliers, we will increase productivity to generate resources for growth and protect Japanese manufacturing.”

“Toyota vehicle net profit falls 43%” was originally created and published by Automatic onlya trademark owned by GlobalData.

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