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Toyota Q3 Earnings Miss Expectations, Revenues Increase Y/Y
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Key Takeaways
TM posted Q3 FY26 EPS of $6.26, missing estimates, while consolidated revenues rose Y/Y to $87.36B.
Toyota's automotive revenues rose 6% Y/Y, but profit fell 6.5%, and Financial Services income jumped 30%.
TM expects FY26 revenues of 50 trillion yen, but projects operating income to drop 20.7%.
Toyota (TM - Free Report) reported fiscal third-quarter 2026 earnings per share of $6.26, which missed the Zacks Consensus Estimate by 4.28% and decreased from $9.98 reported in the year-ago quarter. Consolidated revenues came in at $87.36 billion, which grew from $81.35 billion in the year-ago quarter.
Toyota had consolidated cash and cash equivalents of ¥7.91 trillion ($50.7 billion) as of Dec. 31, 2025. Long-term debt was ¥25.06 trillion ($160.6 billion), up from ¥22.96 trillion as of March 31, 2025.
Toyota Motor Corporation Price, Consensus and EPS Surprise
The Automotive segment’s net revenues for the fiscal third quarter increased 6% year over year to ¥11.92 trillion ($77.4 billion). Operating profit came in at ¥935 billion ($6.07 billion), which declined 6.5% from the year-ago period.
The Financial Services segment’s net revenues rose 22.5% from the prior-year quarter to ¥1.25 trillion ($8.11 billion). The segment registered an operating income of ¥212.9 billion ($1.38 billion), which rose 30% from the third quarter of fiscal 2025.
All Other businesses’ net revenues totaled ¥433 billion ($2.81 billion) in the reported quarter, which increased 10.1% year over year. The unit generated an operating profit of ¥46.9 billion ($304 million), which fell 7.1% year over year.
Toyota’s 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 ¥50 trillion compared with ¥48.04 trillion recorded in fiscal 2025. Operating income is projected to be ¥3.8 trillion, indicating a contraction of 20.7% year over year.
Pretax profit is estimated to be ¥5.02 trillion, implying a decline from ¥6.41 trillion generated in fiscal 2025. R&D expenses are envisioned to be ¥1.42 trillion compared with ¥1.32 trillion spent in fiscal 2025. Capex is forecasted to be ¥2.3 trillion compared with ¥2.13 trillion spent in fiscal 2025.
The Zacks Consensus Estimate for MOD’s fiscal 2026 sales and earnings implies year-over-year growth of 18.5% and 17.5%, respectively. The EPS estimate for fiscal 2026 and 2027 has improved 13 cents and 17 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for F’s 2025 sales implies year-over-year growth of 0.3%. EPS estimates for 2025 and 2026 have improved 7 cents and 11 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for PHIN’s 2025 sales and earnings implies year-over-year growth of 1.1% and 33.4%, respectively. EPS estimates for 2025 and 2026 have improved 47 cents and 66 cents, respectively, in the past 60 days.
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Toyota Q3 Earnings Miss Expectations, Revenues Increase Y/Y
Key Takeaways
Toyota (TM - Free Report) reported fiscal third-quarter 2026 earnings per share of $6.26, which missed the Zacks Consensus Estimate by 4.28% and decreased from $9.98 reported in the year-ago quarter. Consolidated revenues came in at $87.36 billion, which grew from $81.35 billion in the year-ago quarter.
Toyota had consolidated cash and cash equivalents of ¥7.91 trillion ($50.7 billion) as of Dec. 31, 2025. Long-term debt was ¥25.06 trillion ($160.6 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
TM’s Segmental Results
The Automotive segment’s net revenues for the fiscal third quarter increased 6% year over year to ¥11.92 trillion ($77.4 billion). Operating profit came in at ¥935 billion ($6.07 billion), which declined 6.5% from the year-ago period.
The Financial Services segment’s net revenues rose 22.5% from the prior-year quarter to ¥1.25 trillion ($8.11 billion). The segment registered an operating income of ¥212.9 billion ($1.38 billion), which rose 30% from the third quarter of fiscal 2025.
All Other businesses’ net revenues totaled ¥433 billion ($2.81 billion) in the reported quarter, which increased 10.1% year over year. The unit generated an operating profit of ¥46.9 billion ($304 million), which fell 7.1% year over year.
Toyota’s 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 ¥50 trillion compared with ¥48.04 trillion recorded in fiscal 2025. Operating income is projected to be ¥3.8 trillion, indicating a contraction of 20.7% year over year.
Pretax profit is estimated to be ¥5.02 trillion, implying a decline from ¥6.41 trillion generated in fiscal 2025. R&D expenses are envisioned to be ¥1.42 trillion compared with ¥1.32 trillion spent in fiscal 2025. Capex is forecasted to be ¥2.3 trillion compared with ¥2.13 trillion spent in fiscal 2025.
TM’s Zacks Rank & Key Picks
Toyota carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the auto space are Modine Manufacturing Company (MOD - Free Report) , Ford Motor Company (F - Free Report) and PHINIA Inc. (PHIN - Free Report) , 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 MOD’s fiscal 2026 sales and earnings implies year-over-year growth of 18.5% and 17.5%, respectively. The EPS estimate for fiscal 2026 and 2027 has improved 13 cents and 17 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for F’s 2025 sales implies year-over-year growth of 0.3%. EPS estimates for 2025 and 2026 have improved 7 cents and 11 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for PHIN’s 2025 sales and earnings implies year-over-year growth of 1.1% and 33.4%, respectively. EPS estimates for 2025 and 2026 have improved 47 cents and 66 cents, respectively, in the past 60 days.