Toyota TM reported fiscal second-quarter 2026 earnings per share of $4.85, which missed the Zacks Consensus Estimate of $5.07 but increased from $2.90 reported in the year-ago quarter. Consolidated revenues came in at $83.94 billion, which grew from $76.92 billion in the year-ago quarter.
Toyota had consolidated cash and cash equivalents of ¥8.11 trillion ($54.6 billion) as of Sept. 30, 2025. Long-term debt was ¥23.63 trillion ($159 billion), up from ¥22.96 trillion as of March 31, 2025.
Toyota Motor Corporation Price, Consensus and EPS Surprise
Toyota Motor Corporation price-consensus-eps-surprise-chart | Toyota Motor Corporation Quote
Segmental Results
The Automotive segment’s net revenues for the fiscal second quarter increased 7% year over year to ¥11.06 trillion ($74.5 billion). Operating profit came in at ¥574.1 billion ($3.9 billion), which declined 39.5% from the year-ago period.
The Financial Services segment’s net revenues rose 14.4% from the prior-year quarter to ¥1.19 trillion ($8.01 billion). The segment registered an operating income of ¥228.2 billion ($1.54 billion), which rose 40.2% from the second quarter of fiscal 2025.
All Other businesses’ net revenues totaled ¥393 billion ($2.64 billion) in the reported quarter, which increased 16.3% year over year. The unit generated an operating profit of ¥31.4 billion ($212 million), which fell 5.7% year over year.
FY26 Guidance
For fiscal 2026, Toyota projects total retail vehicle sales of 11.3 million units, indicating an increase from 11.01 million units sold in fiscal 2025. Fiscal 2026 sales are expected to total ¥49 trillion compared with ¥48.04 trillion recorded in fiscal 2025. Operating income is projected to be ¥3.4 trillion, indicating a contraction of 29% year over year.
Pretax profit is estimated to be ¥4.18 trillion, implying a decline from ¥6.41 trillion generated in fiscal 2025. R&D expenses are envisioned to be ¥1.5 trillion compared with ¥1.36 trillion spent in fiscal 2025. Capex is forecasted to be ¥2.3 trillion compared with ¥2.13 trillion spent in fiscal 2025.
Toyota Zacks Rank & Key Picks
TM carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the auto space are General Motors Company GM, OPENLANE, Inc. KAR and Garrett Motion Inc. GTX, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GM’s 2025 and 2026 EPS has improved 70 cents and $1.07, respectively, in the past 30 days.
The Zacks Consensus Estimate for KAR’s 2025 sales and earnings implies year-over-year growth of 9.4% and 48.2%, respectively. EPS estimates for 2025 and 2026 have improved 9 cents and 11 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for GTX’s 2025 sales and earnings implies year-over-year growth of 2.6% and 16.7%, respectively. EPS estimates for 2025 and 2026 have improved 12 cents and 22 cents, respectively, in the past 30 days.
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Toyota Motor Corporation (TM): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report OPENLANE, Inc. (KAR): Free Stock Analysis Report Garrett Motion Inc. (GTX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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