Toyota raises profit forecast as weak yen boosts earnings

Japanese car manufacturer Toyota has increased its profit forecast for 2027, attributing the rise to a weak yen and strategic measures. The world's largest automaker by sales expects to generate 3.25 trillion yen in net income for the fiscal year ending March 31, 2027, up from the May estimate of 3.0 trillion yen. Notably, this projection still reflects a 15.5% decrease from the record-breaking 3.8 trillion yen earned during the 2024-25 fiscal year.

The forecast upgrade comes as Toyota adjusts its foreign exchange assumptions in response to the yen's depreciation. Additionally, the company has implemented marketing initiatives, including the creation of alternative logistics routes to the Middle East, to bolster its financial performance.

In the first quarter of 2027, Toyota reported a significant surge in net income, up 75.6% to 1.5 trillion yen. Operating income also grew by 8.8% to 1.1 trillion yen, while revenues increased by 10.4% to 13.5 trillion yen compared to the previous year's figures.

The yen's decline was the result of a joint financial market intervention by Japan and the United States, marking their first such action since the Asian financial crisis of 1998. This move was partly driven by President Donald Trump's efforts to support American companies and reduce the US trade deficit, according to analysts.