Toyota Q2 Earnings Miss Expectations, Revenues Rise Y/Y

Toyota TM reported fiscal second-quarter 2026 earnings per share of $4.85, which missed the Zacks Consensus Estimate of $5.07 but increased from $2.90 reported in the year-ago quarter. Consolidated revenues came in at $83.94 billion, which grew from $76.92 billion in the year-ago quarter.  Toyota had consolidated cash and cash equivalents of ¥8.11 trillion ($54.6 billion) as of Sept. 30, 2025. Long-term debt was ¥23.63 trillion ($159 billion), up from ¥22.96 trillion as of March 31, 2025.Toyota Motor Corporation Price, Consensus and EPS Surprise Toyota Motor Corporation price-consensus-eps-surprise-chart | Toyota Motor Corporation QuoteSegmental ResultsThe Automotive segment’s net revenues for the fiscal second quarter increased 7% year over year to ¥11.06 trillion ($74.5 billion). Operating profit came in at ¥574.1 billion ($3.9 billion), which declined 39.5% from the year-ago period.The Financial Services segment’s net revenues rose 14.4% from the prior-year quarter to ¥1.19 trillion ($8.01 billion). The segment registered an operating income of ¥228.2 billion ($1.54 billion), which rose 40.2% from the second quarter of fiscal 2025.All Other businesses’ net revenues totaled ¥393 billion ($2.64 billion) in the reported quarter, which increased 16.3% year over year. The unit generated an operating profit of ¥31.4 billion ($212 million), which fell 5.7% year over year.FY26 GuidanceFor fiscal 2026, Toyota projects total retail vehicle sales of 11.3 million units, indicating an increase from 11.01 million units sold in fiscal 2025. Fiscal 2026 sales are expected to total ¥49 trillion compared with ¥48.04 trillion recorded in fiscal 2025. Operating income is projected to be ¥3.4 trillion, indicating a contraction of 29% year over year.Pretax profit is estimated to be ¥4.18 trillion, implying a decline from ¥6.41 trillion generated in fiscal 2025. R&D expenses are envisioned to be ¥1.5 trillion compared with ¥1.36 trillion spent in fiscal 2025. Capex is forecasted to be ¥2.3 trillion compared with ¥2.13 trillion spent in fiscal 2025.Toyota Zacks Rank & Key PicksTM carries a Zacks Rank #3 (Hold) at present.Some better-ranked stocks in the auto space are General Motors Company GM, OPENLANE, Inc. KAR and Garrett Motion Inc. GTX, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for GM’s 2025 and 2026 EPS has improved 70 cents and $1.07, respectively, in the past 30 days.The Zacks Consensus Estimate for KAR’s 2025 sales and earnings implies year-over-year growth of 9.4% and 48.2%, respectively. EPS estimates for 2025 and 2026 have improved 9 cents and 11 cents, respectively, in the past seven days.The Zacks Consensus Estimate for GTX’s 2025 sales and earnings implies year-over-year growth of 2.6% and 16.7%, respectively. EPS estimates for 2025 and 2026 have improved 12 cents and 22 cents, respectively, in the past 30 days. #1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Toyota Motor Corporation (TM): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report OPENLANE, Inc. (KAR): Free Stock Analysis Report Garrett Motion Inc. (GTX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks