finance
Toyota forecasts ¥3 trillion operating income despite ¥670 billion Iran-related hit
Toyota Motor projected operating income of ¥3 trillion for the fiscal year ending March 2027, below both consensus estimates and the prior year's result. The Japanese automaker cited higher raw material costs and supply shortages linked to the three-month-old conflict in Iran. Shares fell as much as 2.2 percent after the outlook was released.
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Toyota Motor Corp. forecast ¥3 trillion in operating income for the fiscal year ending March 2027, the company said on May 8, 2026. The projection follows ¥3.8 trillion recorded in the prior period. Shares fell 2 percent after the company issued its operating-income outlook.
The company warned it would be difficult to make up for a negative ¥670 billion impact to its bottom line caused by regional turmoil. Toyota is bracing for higher costs of raw materials because of disruptions stemming from the conflict in Iran, now in its third month.
Toyota suppliers warned last week that they are starting to see shortages in key materials due to the Iran conflict, according to the company.
Toyota is known for conservative forecasts and for playing it safe when forecasting results. The Japan Times reported that the outlook reflects prolonged pressure on materials linked to the regional disruptions. Executives highlighted the challenge of offsetting the ¥670 billion hit from the turmoil.
The company noted that supplier warnings about shortages had emerged only last week. The Iran conflict’s third month has already begun to ripple through global supply chains for key automotive inputs.
No immediate remedies were outlined in the company’s statement.
