Toyota Motor Corporation (NYSE:TM) reported first-quarter 2027 results that exceeded Wall Street expectations, supported by strong hybrid vehicle sales and higher revenue.
The Japanese automaker also raised its full-year operating income and revenue forecasts, while its shares edged 0.28% higher in pre-market trading following the earnings release.
Earnings and Revenue Top Forecasts
Toyota posted adjusted earnings of $7.71 per share for the quarter, comfortably ahead of the analyst consensus estimate of $4.52.
Revenue reached $86.38 billion, surpassing market expectations of $81.01 billion and representing a 10.4% increase from $78.23 billion in the same period last year.
The stronger-than-expected results reflected resilient global demand and continued growth in electrified vehicle sales.
Hybrid Sales Offset Market Challenges
Operating income declined 8.8% year over year to 1.06 trillion yen from 1.17 trillion yen, as the company continued to face challenges in the Middle East market.
However, Toyota said favourable foreign exchange movements, ongoing cost reduction initiatives and rising sales of hybrid electric vehicles helped offset those headwinds.
Hybrid electric vehicle (HEV) sales increased 6.7% from a year earlier to 1.24 million units, while battery electric vehicle (BEV) sales surged 141% to 114,000 units.
Company Raises Full-Year Outlook
Toyota increased its full-year operating income forecast to 3.4 trillion yen, up from its previous guidance of 3.0 trillion yen.
The company also raised its full-year revenue forecast to 54.0 trillion yen from 51.0 trillion yen, reflecting updated foreign exchange assumptions of 160 yen per U.S. dollar, compared with the previous assumption of 150 yen.
Toyota maintained its vehicle sales forecast for fiscal 2027 at 10.5 million units.
Shareholder Returns Remain a Priority
In its earnings statement, Toyota highlighted the resilience of its business despite a changing operating environment.
“Despite significant changes in the business environment, secured results on par with the previous fiscal year through continuous improvement efforts,” the company stated in its earnings release.
The automaker also announced a share repurchase programme of up to 1 trillion yen and said it plans to cancel 200 million treasury shares.
In addition, Toyota maintained its annual dividend forecast at 100 yen per share.
Toyota stock price
