Toyota posts higher sales and revenue in FY2026, but operating profit falls after U.S. tariffs cut ¥1.4 trillion

Toyota Motor Corp. said Friday that it sold more vehicles and generated higher revenue in the fiscal year ended March 31, 2026, but operating profit fell sharply as the automaker said U.S. import tariffs cut operating income by about 1.4 trillion yen.

In full-year results announced May 8, Toyota said consolidated vehicle sales rose to 9,595,000 units from 9,362,000 a year earlier. “Consolidated vehicle sales for this fiscal year reached 9 million 595 thousand units, or 102.5% year-on-year,” the company said in its FY2026 presentation. Sales revenue climbed to 50.6849 trillion yen, while operating income fell to 3.7662 trillion yen from 4.7955 trillion yen in the prior fiscal year.

Toyota summarized the year this way: “Sales revenues of 50 trillion 684.9 billion yen; Operating income of 3 trillion 766.2 billion yen; Income before income taxes of 5 trillion 152.9 billion yen; and Net income of 3 trillion 848.0 billion yen,” according to its FY2026 presentation.

The company pointed directly to tariffs as a major reason profit did not keep pace with sales. “Despite the impact of U.S. tariffs (-1.4 trillion yen), we secured profits consistent with our guidance due to increased vehicle sales volumes and the effects of price revisions…” Toyota said in its presentation materials and prepared remarks.

That left Toyota with a clear split between top-line growth and weaker margins. Revenue increased from 48.0367 trillion yen in fiscal 2025 to 50.6849 trillion yen in fiscal 2026, but operating income dropped by 1.0293 trillion yen from 4.7955 trillion yen. Net income attributable to Toyota Motor Corp. also declined, falling to 3.848 trillion yen from 4.765 trillion yen a year earlier. Income before income taxes for the latest year was 5.1529 trillion.

Toyota also used the results to highlight continued demand for lower-emissions models. “Sales of electrified vehicles exceeded 5 million units for the first time,” the company said in its FY2026 presentation. The company did not need that milestone to explain the earnings decline, but it underscored that vehicle demand remained strong even as profit came under pressure.

For shareholders, Toyota raised its full-year dividend for fiscal 2026 to 95 yen per share, up 5 yen from the prior year. It also forecast a fiscal 2027 dividend of 100 yen per share.

The results reinforce the central theme of Toyota’s latest fiscal year: more vehicles sold and more revenue booked did not translate into higher profit. Instead, tariff-related costs and other pressures weighed on earnings, even as the company said stronger sales volumes and price revisions helped it meet its guidance. The combination left Toyota ending the year with higher sales, a lower profit base and a higher dividend.