Toyota raises full-year profit forecast 13% on weaker yen despite fifth quarterly decline

The automaker's upward revision highlights the yen's tailwind, even as China sales slump and U.S. tariff headwinds persist.

By Handelsavisen Newsroom · Automated 2026-08-04 06:45 UTC · 1 min read

Toyota Motor has lifted its full-year operating profit forecast by 13%, citing the favorable impact of a weaker yen on its consolidated results.

The upward revision comes as the Japanese automaker reported a fifth consecutive quarterly drop in earnings, driven by softening demand in China and ongoing cost pressures from U.S. tariffs.

This development follows Toyota's announcement of an $8 billion share repurchase program, signaling management's confidence in long-term cash flow generation despite near-term headwinds.

The divergence between the annual outlook and recent quarterly performance underscores the dual forces shaping Toyota's financials.

While the weak yen continues to boost the value of overseas earnings when converted back to yen, underlying sales momentum remains fragile.

The company's latest results reflect a challenging environment in key markets, particularly China, where sales have been declining.

This development follows Toyota's announcement of an $8 billion share repurchase program, signaling management's confidence in long-term cash flow generation despite near-term headwinds.