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[BUSINESS] · Japan, United States, China · 20 sources

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Toyota raises profit forecast as hybrid demand drives stock surge

Toyota Motor Corp. has raised its full-year operating profit forecast by 15 percent to 3.9 trillion yen (approximately 24.6 billion USD) for the fiscal year ending March 2027. This upward revision follows a 34 percent year-over-year increase in operating profit for the July-September quarter, marking the company’s first quarterly profit gain in six quarters.

The automaker attributed its strong performance to robust demand for hybrid vehicles, particularly in the United States, and a weak yen, which bolsters the value of overseas revenue. While Toyota faces challenges including rising raw material costs, supply disruptions, and competition in China, the company has mitigated these impacts through cost reductions and supply chain optimization.

In response to the positive results, Toyota shares experienced a significant rally in Tokyo, posting their largest single-day gain since 1987. Additionally, the company announced expanded shareholder returns, including an increased share buyback limit of up to 1.3 trillion yen and plans for significant long-term shareholder payouts.

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Denso · LSEG · Lexus · Marusan Securities · Mitsui Sumitomo Insurance · Takanori Azuma · Takefumi Shiga · Tokio Marine & Nichido Fire Insurance · Tokyo Stock Exchange · Toyota · Toyota Motor Corp · Toyota Motor Corp.

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