Toyota lifts earnings forecast; stock posts biggest gain in 39 years (+17%) (Nov 5)
What happened
Toyota Motor raised its annual earnings forecast after a weaker yen and cost cuts bolstered quarterly operating profit, signaling confidence in navigating disruptions from U.S. tariffs and the Iran war. Shares surged as much as 17% in Tokyo on Thursday, their biggest one-day percentage gain since 1987. For the three months ended September, net profit fell 19% to 759.4 billion yen ($4.79 billion), slightly missing analysts' estimate of 779.6 billion yen, but operating profit climbed 34% to 1.128 trillion yen. For the fiscal year ending March 2027, Toyota now projects net profit of 3.570 trillion yen, down 7.2% year over year but an improvement from its earlier view of 3.250 trillion yen. CFO Yoichi Miyazaki said Thursday there is further room for cost reduction, while noting 'we haven't been able to bounce back from the impact of (U.S.) tariffs and the situation in the Middle East.'
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Who’s affected
- Toyota (TM) — raised full-year profit forecast; shares surged as much as 17% in Tokyo, biggest one-day gain since 1987
- U.S. automakers and auto suppliers — Toyota's tariff navigation and U.S. production shift set a read-through for tariff-hit peers
- Japanese yen / Japan equities — weaker yen cited as a key profit tailwind
Sources