Toyota's operating profit rose 9.2% to ¥2.19tn in the six months to September 2026, on revenue up 9.5% to ¥26.96tn, even though consolidated vehicle sales slipped 0.5% to 4.758mn units. Japan sales rose 5.6% to 1.024mn; overseas sales fell 2.1% to 3.734mn. The half-year earnings release, dated 5 November 2026, is not covered by an auditor's review.
The yen did the heavy lifting
The dollar averaged ¥159 against ¥146 a year earlier, and the euro ¥184 against ¥168. Currency added ¥685bn to operating profit, while the total increase was ¥185.4bn. Toyota's presentation puts the change at minus ¥195bn once currency and swap valuation effects are excluded.
The other bridge items pulled the other way. Cost improvement efforts subtracted ¥340bn: material prices cost ¥465bn, including a Middle East effect of ¥125bn, and cost-reduction work recovered ¥125bn. Operating efforts added ¥165bn, with volume and mix at minus ¥115bn and value-chain earnings at plus ¥70bn. "Other" items subtracted ¥304.6bn, led by a ¥236.3bn unrealised-profit adjustment. The operating margin was 8.1%, the same as a year earlier.
Below the operating line
Pre-tax profit rose 19.2% to ¥2.95tn and profit attributable to owners of the parent rose 26.1% to ¥2.24tn. During the half Toyota lost control of Hino Motors when Hino and Mitsubishi Fuso Truck and Bus integrated, which removed Hino and its consolidated subsidiaries, 70 companies, from the scope of consolidation. Toyota booked a ¥95.4bn loss on that loss of control under other financial expenses, which the income statement shows below operating profit.
The July-September quarter shows the split. Operating profit rose to ¥1.13tn from ¥839.5bn, but pre-tax profit fell to ¥990.5bn from ¥1.23tn and attributable profit fell to ¥759.4bn from ¥932.0bn. The prior-year half-year sales base includes 51,000 consolidated Hino-brand vehicles. The full-year vehicle-sales forecast excludes Hino-brand vehicles, although its consolidated sales figure includes some Hino-brand vehicles made by Toyota consolidated subsidiaries.
A higher guide on a stronger-yen assumption
Toyota now expects operating profit of ¥3.9tn for the year to March 2027, ¥500bn above its previous forecast, and 3.6% above the prior year. It cut its revenue forecast to ¥53.5tn from ¥54.0tn. The dollar assumption moved to ¥157 from ¥160, and the euro to ¥182 from ¥181.
| Item | Previous forecast | New forecast | New forecast vs prior year |
|---|---|---|---|
| Operating revenue | ¥54.0tn | ¥53.5tn | +5.6% |
| Operating profit | ¥3.4tn | ¥3.9tn | +3.6% |
| Pre-tax profit | ¥4.57tn | ¥4.96tn | -3.7% |
| Attributable profit | ¥3.25tn | ¥3.57tn | -7.2% |
The presentation's bridge for the revision shows currency adding ¥20bn, cost improvement ¥5bn, operating efforts ¥140bn and expense lines ¥365bn, partly offset by ¥30bn from other items. Management points to a lighter tariff burden and growth in value-chain earnings. Net profit is still forecast 7.2% below last year, and pre-tax profit 3.7% below. Toyota's risk list names exchange rates and tariffs among the factors that could move results.
Toyota expects to file its half-year report on 12 November.