Toyota (TM.US) Q2 operating profit surged 34% to exceed expectations, raising full-year profit expectations again with strong demand for hybrid vehicles and weak yen

The Zhitong Finance App learned that Toyota (TM.US) announced its results for the second quarter of the 2027 fiscal year on Thursday. According to financial reports, Toyota's revenue for the second quarter of fiscal year 2027 (July-September 2026) was 13.44 trillion yen, up about 8.6% from 12.38 trillion yen in the same period last year. Operating profit was 1.13 trillion yen, up 34.3% from 839.5 billion yen in the same period last year, significantly better than the median forecast of 992 billion yen given by nine analysts surveyed by the London Stock Exchange Group (LSEG); the operating margin was 8.4%, compared to 6.8% for the same period last year. Net profit attributable to the company was 759.4 billion yen, down 18.5% from 932 billion yen in the same period last year.

Revenue for the first half of fiscal year 2027 was 26.96 trillion yen, up 9.5% year over year. Operating profit was 2.19 trillion yen, up 9.2% year on year; net profit attributable to the company was 2.24 trillion yen, up 26.1% year on year.

Thanks to market demand for hybrid vehicles and the weakening yen, Toyota once again raised its earnings forecast for the 2027 fiscal year. Toyota said on Thursday that in the fiscal year ending March 2027, operating profit is expected to reach 3.9 trillion yen (about 24.7 billion US dollars), higher than the previous forecast of 3.4 trillion yen.

As the world's largest automobile manufacturer, Toyota has benefited from strong demand for hybrid vehicles in the US and other markets, which helped it offset the decline in sales in the Chinese market. This trend has continued for most of this year. Earlier this week, Toyota said it plans to launch the next generation of the popular Corolla (Corolla) in China. Company executives also hinted that Toyota may launch an all-electric version of this model, which will mark a major transformation for the best-selling car in global history. Furthermore, Toyota is trying to reverse the situation by constructing a new plant in Shanghai. The plant will start producing Lexus (Lexus) brand electric vehicles in late 2027.

After the financial report was announced, the price of Toyota's stock listed in Japan soared sharply, reaching the highest intraday increase of 15%. However, before the financial report was released, Toyota's stock price had already risen 8.5% on the same day due to investors' optimistic expectations that after the Democratic Party swept through the midterm elections, the market expected US President Trump's tariff policy to ease somewhat. Since Trump raised automobile tariffs to 15% last year, Japanese automakers have collectively lost billions of yen.

Furthermore, Toyota increased the size of its share repurchase program by 300 billion yen to 1.3 trillion yen (about 8.2 billion US dollars). The maximum number of shares to be repurchased will increase to 610 million shares, up from the 500 million shares announced in August. Toyota will initiate an offer to buy back its shares at 2,725 yen per share. Mitsui Sumitomo Insurance, Aiwayi Nissei Dowa General Insurance, Tokio Marine & Nichido Fire Insurance, and Nihon Koya Property Insurance have agreed to participate in this offer sale.