Toyota shares surge about 16% after operating profit beats estimates and full-year guidance is raised

For the July–September 2026 quarter, Toyota posted operating income of ¥1.13 trillion against an analyst estimate of ¥964.86 billion. Net income of ¥759.4 billion came in slightly below the ¥769.79 billion estimate. Reported GAAP earnings per share were ¥185.97 on revenue of ¥26.96 trillion.

Management raised its full-year outlook: operating income is now seen at ¥3.90 trillion, up from ¥3.40 trillion, and net income at ¥3.57 trillion, up from ¥3.25 trillion. Before the release, Reuters-based previews had pointed to an 18% profit rise, which would be the first increase in six quarters.

Shares reacted sharply. One report cited a 16.6% gain in Tokyo trading, the biggest one-day rise for the stock since 1987. One source also says an expanded share buyback programme supported the move, and another credits strong hybrid vehicle sales, though neither point is confirmed in detail.

Against this, Toyota lowered its annual sales forecast, which MarketWatch described as a rare combination with a strong share rally. Investors appear to be prioritising higher profitability and capital returns over weaker volume expectations.