Investing.com-- Toyota Motor Corp (TYO:7203) clocked a stronger-than-expected operating profit in the September quarter and hiked its guidance and buyback plans, as the world's largest automaker benefited from steady sales and a weaker yen.
Toyota's operating income in the three months ended September 30– its second fiscal quarter– rose to 1.127 trillion yen ($7.1 billion) from 839.5 billion yen a year ago. The print coasted past Reuters estimates of 992 billion yen.
Shares of the automaker surged as much as 15% on Thursday and were among the best performers on the Nikkei 225, as a U.S. Democrat sweep of the midterm elections spurred hopes for some future relief from President Donald Trump's tariff agenda.
Revenue grew to 13.437 trillion yen from 12.377 trillion yen, in line with estimates. The automaker's net profit fell to 759.4 billion yen from 932.0 billion yen a year earlier.
U.S. tariffs on Japanese imports remained a major cost headwind for Toyota, as did disruptions stemming from a prolonged conflict in the Middle East.
Total vehicle sales in the September quarter fell to 2.667 million units from 2.814 million units a year ago, pressured chiefly by weakness in China.
But Toyota's core Japanese and North American markets clocked steady sales, while its European sales also grew in the quarter.
A weak yen was the key driver of revenue growth, even as headline sales fell.
Toyota's Hybrid vehicles– a category the company pioneered with its Prius model in the late-1990s– continued to be the company's biggest sellers, as cost-conscious customers flocked to the high mileage provided by the system.
Hybrids also offer much better margins for Toyota, while demand for the segment was further boosted by soaring fuel prices in North America and Europe.
Its China performance, however, remained laggard, amid bitter competition with local electric vehicle makers. Toyota's China sales fell 12% year-on-year.
Toyota hiked its profit forecast for the year to March 2027. Operating income is now expected at 3.900 trillion yen, up from prior forecasts of 3.400 trillion yen and last year's income of 3.766 trillion yen.
Net income is also expected to be higher at 3.570 trillion yen from prior forecasts of 3.250 trillion yen, but below last year's print of 3.848 trillion yen.
Toyota slightly trimmed its revenue guidance to 53.500 trillion yen from 54.000 trillion yen, but still above last year's print of 50.684 trillion yen.
The Japanese automaker slightly trimmed its vehicle sales guidance to 10.990 million units for the year, from 11.180 million units and below last year's deliveries of 11.283 million units.
Toyota hiked the upper limit for its capacity to buy back shares by to 1.3 trillion yen from 1.0 trillion yen for the current fiscal year.
Original Article
Toyota Q2 profit beats estimates; hikes guidance, buyback plans
Swisscom Q3 net income misses estimates as revenue beats forecasts
Deutsche Telekom lifts 2026 targets in Q3, buyback below forecasts
