Toyota Motor underperformed quarterly operating profit expectations for the FY2026 second quarter results ended in September 2025, as the Japanese automaker struggled with the impact of U.S. tariffs.
The company posted revenue of JPY 12.38 trillion (approximately $81 billion), ahead of the JPY 12.18 trillion consensus from LSEG. However, operating profit came in at JPY 834 billion, falling short of the JPY 863.1 billion average forecast.
According to numbers compiled by CNBC based on company disclosures and LSEG data, the world’s largest automaker by sales volume experienced a 28% year-on-year drop in operating profit for the quarter, even as revenue climbed more than 8%.
Toyota’s profit decline marks the second consecutive quarterly drop since the United States implemented reciprocal tariffs in April. In July, Tokyo and Washington reached a trade accord that reduced the proposed U.S. import tariff rate from 25% to 15% on Japanese auto shipments, with the new rate taking effect on August 7 under President Donald Trump’s administration.
Despite the tariff relief, Japanese car exports to the U.S. have contracted sharply. In September, export value slid 24.2%, following a 28.4% decline in August.
Still, solid global demand continued to underpin Toyota’s top line. The automaker’s group-wide sales, including Lexus, totaled 5.3 million vehicles from April to September, up 4.7% from a year earlier.
