Toyota Motor (NYSE:TM) Announces Quarterly Earnings Results

Toyota Motor (NYSE:TM) announced its quarterly earnings results on Friday. The company reported $4.00 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.11 by $0.89, Zacks reports. The firm had revenue of $76.81 billion for the quarter, compared to analyst estimates of $79.57 billion. Toyota Motor had a net margin of 7.32% and a return on equity of 9.67%. Toyota Motor updated its FY 2027 guidance to 16.020-16.020 EPS.

Here are the key takeaways from Toyota Motor’s conference call:

• Toyota reported FY2026 operating income of JPY 3.8 trillion and consolidated sales of JPY 50.7 trillion, with vehicle sales up ~2.5% and electrified vehicle sales exceeding 5 million units (driven mainly by HEVs).
• The company forecasts FY2027 operating income of JPY 3.0 trillion, a year‑on‑year decline of ~JPY 800 billion (the third consecutive annual drop), citing unresolved impacts from U.S. tariffs and a ~JPY 670 billion Middle East‑related headwind.
• Toyota raised the FY2026 dividend to JPY 95 and plans a further increase to JPY 100 for FY2027, while keeping share buybacks flexible (no year‑end repurchase limit).
• Management acknowledged that mid‑to‑long‑term business‑structure transformations remain only partly complete, limiting their ability to fully offset cost and tariff pressures and leaving uncertainty about the timing of achieving the ROE 20% goal (no timeline provided).
• Management outlined strategic levers to restore sustainable growth — maximize capacity (Area 35), expand value‑chain revenue (~JPY 150 billion/year), scale HEV/BEV production and pursue new mobility and robotics — but outcomes and timing remain uncertain.

Toyota Motor Stock Down 0.7%

TM opened at $187.64 on Friday. The firm’s 50-day simple moving average is $211.15 and its 200-day simple moving average is $214.43. The company has a debt-to-equity ratio of 0.63, a quick ratio of 1.12 and a current ratio of 1.26. Toyota Motor has a twelve month low of $167.18 and a twelve month high of $248.90. The firm has a market cap of $244.55 billion, a price-to-earnings ratio of 9.58 and a beta of 0.58.

Analyst Ratings Changes

Several equities research analysts have issued reports on TM shares. Morgan Stanley began coverage on shares of Toyota Motor in a report on Friday, May 1st. They issued an “equal weight” rating on the stock. Zacks Research raised shares of Toyota Motor from a “hold” rating to a “strong-buy” rating in a report on Monday, April 13th. Erste Group Bank lowered shares of Toyota Motor from a “buy” rating to a “hold” rating in a report on Thursday, April 2nd. DZ Bank raised shares of Toyota Motor from a “strong sell” rating to a “strong-buy” rating in a report on Monday, March 2nd. Finally, BNP Paribas Exane began coverage on shares of Toyota Motor in a report on Thursday, February 12th. They issued an “outperform” rating and a $290.00 target price on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, two have assigned a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Toyota Motor has an average rating of “Moderate Buy” and an average price target of $290.00.

Trending Headlines about Toyota Motor

Here are the key news stories impacting Toyota Motor this week:

• Positive Sentiment: Toyota reported quarterly EPS of $4.00, beating analyst estimates of $3.11, showing the company still has earnings power despite a tougher operating environment. Toyota Motor earnings report and conference call
• Neutral Sentiment: The company also announced a treasury stock disposal tied to an expanded restricted share plan, which is typically a compensation-related capital action and not usually a major stock driver. Toyota to Dispose of Treasury Stock for Expanded Restricted Share Plan
• Neutral Sentiment: Investors also had access to the Q4 2026 earnings call transcript and presentation, but these are informational updates rather than new catalysts on their own. Toyota Motor Corporation (TM) Q4 2026 Earnings Call Transcript
• Negative Sentiment: Toyota updated FY2027 guidance with EPS of 16.02, far below the 22.45 consensus estimate, even though revenue guidance of $325.2 billion was above expectations; the lower earnings outlook is likely weighing on the stock.
• Negative Sentiment: Management warned that U.S. tariffs and Middle East conflict-related costs and supply disruptions will hurt profitability, and several reports highlighted a steep drop in annual profit expectations. Toyota Posts Weak Financial Results Due To U.S. Tariffs Toyota Projects Lower Profit Due to Middle East Impact Toyota sees 20% drop in annual profit as Iran war weighs Toyota fourth-quarter profit misses by wide margin as U.S. tariffs drive 49% slump

Institutional Investors Weigh In On Toyota Motor

A number of hedge funds have recently added to or reduced their stakes in TM. Morgan Stanley grew its holdings in Toyota Motor by 13.0% during the 4th quarter. Morgan Stanley now owns 2,421,645 shares of the company’s stock worth $518,378,000 after acquiring an additional 279,110 shares during the last quarter. Orion Porfolio Solutions LLC grew its holdings in Toyota Motor by 717.3% during the 2nd quarter. Orion Porfolio Solutions LLC now owns 145,990 shares of the company’s stock worth $25,148,000 after acquiring an additional 128,128 shares during the last quarter. JPMorgan Chase & Co. grew its holdings in Toyota Motor by 116.3% during the 4th quarter. JPMorgan Chase & Co. now owns 231,614 shares of the company’s stock worth $49,580,000 after acquiring an additional 124,520 shares during the last quarter. Franklin Resources Inc. grew its holdings in Toyota Motor by 1,509.1% during the 3rd quarter. Franklin Resources Inc. now owns 100,554 shares of the company’s stock worth $19,215,000 after acquiring an additional 94,305 shares during the last quarter. Finally, Royal Bank of Canada grew its holdings in Toyota Motor by 81.2% during the 4th quarter. Royal Bank of Canada now owns 199,327 shares of the company’s stock worth $42,667,000 after acquiring an additional 89,316 shares during the last quarter. Institutional investors own 1.48% of the company’s stock.

About Toyota Motor

Toyota Motor Corporation is a global automotive manufacturer headquartered in Toyota City, Aichi, Japan. Founded in 1937 by Kiichiro Toyoda as an offshoot of Toyoda Automatic Loom Works, the company builds and sells a broad range of vehicles and related products under the Toyota and Lexus brands. Toyota’s operations encompass vehicle design, manufacturing, parts supply, and distribution through a worldwide dealer network, as well as complementary businesses such as vehicle financing and mobility services.

The company’s product lineup includes passenger cars, SUVs, pickup trucks, light commercial vehicles and heavy-duty commercial vehicles, along with engines and vehicle components.