Toyota reported a 34% increase in operating profit for the July-September quarter, reaching 1.13 trillion yen, as demand for higher-margin hybrid vehicles and a weaker yen supported its financial performance.
The result exceeded the median analyst estimate of 992 billion yen in a poll of nine analysts conducted by LSEG. It also marked the automaker’s first quarterly profit increase in six quarters.
Hybrid Demand Supports Earnings
Toyota’s continued focus on petrol-electric hybrid vehicles contributed to its stronger quarterly performance. The company has benefited from demand for hybrid models as it maintains a broader powertrain strategy amid varying adoption rates for battery-electric vehicles across major markets.
However, weaker sales in China and the Middle East remained challenges during the period. Toyota also faced pressure from higher material costs and developments affecting its operations in the Middle East.
Chief Accounting Officer Takanori Azuma said the company had offset some of these pressures through sales initiatives and cost reductions.
Annual Profit Forecast Increased
Following the quarterly results, Toyota raised its operating profit forecast for the financial year ending March 2027 by 15% to 3.9 trillion yen (approximately S$31.48 billion).
The revised outlook reflects the company’s stronger-than-expected quarterly earnings, supported by its product mix and currency effects.