Toyota net income falls almost 25% in first nine months of FY2026

Core Insights - Toyota experienced a nearly 10% increase in net revenue, reaching $255.6 billion, which helped mitigate profit declines [3][8] - The company achieved record-high global consolidated vehicle sales of 7.3 million units for the nine-month period ending December 31, 2025, an increase of approximately 302,000 vehicles [3] - Despite strong sales in most regions, sales in Asia fell by 53,000 units [3] Financial Performance - In North America, Toyota reported an operating loss of $40 million in the first nine months of FY2026, a significant decline from a profit of $1.3 billion the previous year, attributed to tariff pressures and increased expenses [4][8] - Operating income decreased from $24 billion to $21.5 billion year-over-year, while net income fell nearly 25% from $26.8 billion to $20.3 billion [8] - The negative impact of U.S. tariffs on vehicle imports from Japan was estimated at around $8 billion on operating income [8] Sales Performance - U.S. vehicle sales reached 2,518,071 units in 2025, marking an 8% increase (275,000 units) compared to the previous year [5] - Notable sales growth was observed in popular models, with the Camry and Corolla Hybrid, RAV4, Tacoma, and Grand Highlander achieving record sales [6] - The Grand Highlander saw a remarkable 90.7% increase in sales to 136,801 units, while Tacoma pickup sales rose by 42.4% year-over-year to 274,638 units [6]