Words: Richard Edwards
Published 13 May 2026
Toyota Motor Corporation has posted record global revenue of 50.68 trillion yen (approximately NZ$544 billion) for the year ending March, making it the first Japanese company to crack that level, even as net profit fell 19.2%.
Sales rose 5.5% from the previous year, driven by strong demand for hybrid vehicles and price revisions across major markets. Net profit dropped to 3.85 trillion yen (NZ$41.3 billion), with operating profit falling 21.5%.
The profit decline was largely down to higher US tariffs and the ongoing Iran war, which collectively knocked 1.38 trillion yen (NZ$14.8 billion) off operating profit.
Toyota expects the Iran war to cost approximately NZ$46.2 billion in the current financial year, one of the starkest warnings yet from a global company about the conflict’s wider economic reach. Chief Accounting Officer Takanori Azuma says the impact is being felt across fuel costs, transportation expenses, and the cost of materials used at assembly plants. Japan imports roughly 70% of its aluminium from the Middle East, making Toyota particularly exposed.
US tariffs also took a significant toll. The 27.5% tariff on Japanese car imports imposed by President Trump in April last year, later negotiated down to 15%, still cost Toyota 1.4 trillion yen (NZ$15 billion) over the year.
Despite all that, the Toyota group’s vehicle sales rose 2.5% to 11.28 million units. Hybrid sales are expected to top 5 million units for the first time this year, while battery electric vehicle sales are projected to grow by almost two-and-a-half times, with increases planned across China, Europe and North America.
The results are the first under new CEO Kenta Kon, a former finance chief known for tight cost control. Kon says the company remains positioned for growth. “Rather than hitting the brakes, we believe the earnings put us in a position to identify areas of waste and transform our structure step by step,” he says.
Looking ahead, Toyota projects net profit will fall a further 22% in the current year, with operating profit down 20.3%. Worldwide sales are forecast at 11.18 million units, down slightly, though hybrid volumes are expected to hold above 5 million.
