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Toyota Q1 Earnings Miss Estimates on High Labor Cost & R&D Expenses
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Key Takeaways
Toyota Q1 earnings missed estimates as higher labor costs, depreciation and R&D expenses pressured profit.
TM expects FY2027 retail sales of 11.18M vehicles, with operating income projected to decline 9.7%.
TM forecasts FY2027 sales of 54 trillion yen, R&D spending of 1.6 trillion yen and capex of 2.3 trillion yen.
Toyota Motor Corporation (TM - Free Report) reported first-quarter fiscal 2027 earnings of $7.57 per share, which missed the Zacks Consensus Estimate by 4.28% and increased from $4.47 reported in the year-ago quarter. Revenues remained nearly flat year over year at $84.9 billion.
Profitability was pressured by model mix, labor costs, depreciation and R&D expenses.
Toyota had consolidated cash and cash equivalents of ¥10.34 trillion ($64.34 billion) as of June 30, 2026. Long-term debt was ¥26.08 trillion ($162.3 billion), up from ¥25.62 trillion as of March 31, 2026.
Toyota Motor Corporation Price, Consensus and EPS Surprise
The Automotive segment’s net revenues for the fiscal first quarter increased 8.8% year over year to ¥12.01 trillion ($75.36 billion). Operating profit came in at ¥719.9 billion ($4.51 billion), which declined 21% from the year-ago period.
The Financial Services segment’s net revenues rose 23.2% from the prior-year quarter to ¥1.4 trillion ($8.78 billion). The segment registered an operating income of ¥275.7 billion ($1.72 billion), which rose 24% from the first quarter of fiscal 2026.
All Other businesses’ net revenues totaled ¥469.9 billion ($2.94 billion) in the reported quarter, which increased 37% year over year. The unit generated an operating profit of ¥16.3 billion ($512.5 million), which rose 118% year over year.
Toyota’s FY27 Guidance
For fiscal 2027, Toyota projects total retail vehicle sales of 11.18 million units, indicating a decline from 11.28 million units sold in fiscal 2026. Fiscal 2027 sales are expected to total ¥54 trillion compared with ¥50.68 trillion recorded in fiscal 2026. Operating income is projected to be ¥3.4 trillion, indicating a contraction of 9.7% year over year.
Pretax profit is estimated to be ¥4.57 trillion, implying a decline from ¥5.12 trillion generated in fiscal 2026. R&D expenses are envisioned to be ¥1.6 trillion compared with ¥1.52 trillion spent in fiscal 2026. Capex is forecast at ¥2.3 trillion compared with ¥2.39 trillion spent in fiscal 2026.
General Motors Company (GM - Free Report) reported second-quarter 2026 adjusted earnings of $3.57 per share, up 41.3% year over year. The figure beat the Zacks Consensus Estimate of $3.13 by 14.06%. Revenues increased 1.9% to $48.03 billion and surpassed the consensus estimate of $46.56 billion by 3.15%. Strong pricing, lower costs and disciplined incentives supported results. General Motors raised its full-year adjusted EBIT guidance to $14-$16 billion from $13.5-$15.5 billion. Adjusted earnings are now projected at $12-$14 per share, up from the prior range of $11.50-$13.50.
Tesla, Inc. (TSLA - Free Report) reported second-quarter 2026 adjusted earnings of 33 cents per share, which declined 17.5% year over year. The figure missed the Zacks Consensus Estimate of 50 cents by 34%. Revenues advanced 25.5% to $28.24 billion and surpassed the consensus estimate of $25.81 billion by 9.41%. Tesla expects 2026 capital expenditures to exceed $25 billion and rise further over the next two to three years.
Genuine Parts Company (GPC - Free Report) reported second-quarter 2026 adjusted earnings of $2.15 per share, beating the Zacks Consensus Estimate of $2.10 by 2.38%. The bottom line increased 2.4% from $2.10 in the year-ago quarter. Revenues rose 6% year over year to $6.54 billion and surpassed the consensus estimate of $6.39 billion by 2.36%. Genuine Parts reaffirmed its 2026 adjusted earnings guidance of $7.50-$8 per share and total sales growth outlook of 3-5.5%. Genuine Parts ended June with $2.3 billion of liquidity, including $559 million in cash.
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Toyota Q1 Earnings Miss Estimates on High Labor Cost & R&D Expenses
Key Takeaways
Toyota Motor Corporation (TM - Free Report) reported first-quarter fiscal 2027 earnings of $7.57 per share, which missed the Zacks Consensus Estimate by 4.28% and increased from $4.47 reported in the year-ago quarter. Revenues remained nearly flat year over year at $84.9 billion.
Profitability was pressured by model mix, labor costs, depreciation and R&D expenses.
Toyota had consolidated cash and cash equivalents of ¥10.34 trillion ($64.34 billion) as of June 30, 2026. Long-term debt was ¥26.08 trillion ($162.3 billion), up from ¥25.62 trillion as of March 31, 2026.
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 first quarter increased 8.8% year over year to ¥12.01 trillion ($75.36 billion). Operating profit came in at ¥719.9 billion ($4.51 billion), which declined 21% from the year-ago period.
The Financial Services segment’s net revenues rose 23.2% from the prior-year quarter to ¥1.4 trillion ($8.78 billion). The segment registered an operating income of ¥275.7 billion ($1.72 billion), which rose 24% from the first quarter of fiscal 2026.
All Other businesses’ net revenues totaled ¥469.9 billion ($2.94 billion) in the reported quarter, which increased 37% year over year. The unit generated an operating profit of ¥16.3 billion ($512.5 million), which rose 118% year over year.
Toyota’s FY27 Guidance
For fiscal 2027, Toyota projects total retail vehicle sales of 11.18 million units, indicating a decline from 11.28 million units sold in fiscal 2026. Fiscal 2027 sales are expected to total ¥54 trillion compared with ¥50.68 trillion recorded in fiscal 2026. Operating income is projected to be ¥3.4 trillion, indicating a contraction of 9.7% year over year.
Pretax profit is estimated to be ¥4.57 trillion, implying a decline from ¥5.12 trillion generated in fiscal 2026. R&D expenses are envisioned to be ¥1.6 trillion compared with ¥1.52 trillion spent in fiscal 2026. Capex is forecast at ¥2.3 trillion compared with ¥2.39 trillion spent in fiscal 2026.
TM currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Releases From Auto Space
General Motors Company (GM - Free Report) reported second-quarter 2026 adjusted earnings of $3.57 per share, up 41.3% year over year. The figure beat the Zacks Consensus Estimate of $3.13 by 14.06%. Revenues increased 1.9% to $48.03 billion and surpassed the consensus estimate of $46.56 billion by 3.15%. Strong pricing, lower costs and disciplined incentives supported results. General Motors raised its full-year adjusted EBIT guidance to $14-$16 billion from $13.5-$15.5 billion. Adjusted earnings are now projected at $12-$14 per share, up from the prior range of $11.50-$13.50.
Tesla, Inc. (TSLA - Free Report) reported second-quarter 2026 adjusted earnings of 33 cents per share, which declined 17.5% year over year. The figure missed the Zacks Consensus Estimate of 50 cents by 34%. Revenues advanced 25.5% to $28.24 billion and surpassed the consensus estimate of $25.81 billion by 9.41%. Tesla expects 2026 capital expenditures to exceed $25 billion and rise further over the next two to three years.
Genuine Parts Company (GPC - Free Report) reported second-quarter 2026 adjusted earnings of $2.15 per share, beating the Zacks Consensus Estimate of $2.10 by 2.38%. The bottom line increased 2.4% from $2.10 in the year-ago quarter. Revenues rose 6% year over year to $6.54 billion and surpassed the consensus estimate of $6.39 billion by 2.36%. Genuine Parts reaffirmed its 2026 adjusted earnings guidance of $7.50-$8 per share and total sales growth outlook of 3-5.5%. Genuine Parts ended June with $2.3 billion of liquidity, including $559 million in cash.