Japanese auto giant Toyota has revised its profit and sales forecasts upward for the current fiscal year despite facing increased costs linked to United States tariffs. The company announced on Friday that cost reduction measures and improved marketing strategies helped soften the negative effects of the tariffs imposed during the year.
In a statement Toyota said that although US tariffs introduced this fiscal year had a negative impact the company was able to limit the decline in profits through operational efficiencies and stronger sales efforts. For the fiscal year ending March 2026 Toyota now expects net profit to reach 3.57 trillion yen equivalent to about 22.8 billion dollars up from an earlier forecast of 2.93 trillion yen. Operating profit is also projected to rise to 3.8 trillion yen from a previous estimate of 3.4 trillion yen.
The automaker also raised its sales outlook with revenue now expected to reach 50 trillion yen compared with the earlier projection of about 49 trillion yen. The improved forecast reflects resilient global demand and Toyota ability to maintain strong market positioning despite trade tensions.
However the company noted that performance in the September to December quarter was weaker. During that period both net and operating profit declined even though sales increased. Toyota attributed the drop largely to higher expenses caused by tariff related costs.
Last month Toyota announced that its global vehicle sales reached a record high in 2025. This achievement allowed the company to retain its position as the world largest automaker and further widen the gap with its main rival Volkswagen. The strong overall performance came despite flat sales in China which remains a critical market where Toyota faces growing competition from domestic manufacturers including electric vehicle leader BYD.
In the United States Toyota sales rose by eight percent despite the imposition of a 25 percent tariff on Japanese auto exports between April and mid September. A lower cap of 15 percent was later introduced. The company performance highlights its ability to navigate challenging trade conditions while sustaining growth.
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