From Yahoo Finance: 2025-05-07 00:05:00

Toyota is expected to report steady profits due to robust demand for hybrids, but investors are wary of potential impact from U.S. tariffs. Sales data show momentum with a 5% increase in global sales. Operating profit for the fourth quarter is expected to rise 2% year-on-year, the first increase in three quarters.

Analysts are closely monitoring how Toyota will address potential hits from Trump’s tariffs on future profits, with estimates suggesting an 800 billion yen impact. The company may produce the next RAV4 SUV in the U.S. to mitigate risks. Toyota’s shares have dropped 13% this year, while analysts are waiting for updates on cross-shareholdings strategy.

Investors are concerned about Toyota’s potential investment in a buyout of Toyota Industries, with mixed reactions expected depending on the deal structure. Extra investment in the supplier may be viewed negatively, while steps towards unwinding cross-shareholdings could be seen as positive for the market.

Read more: Toyota’s earnings buffered by demand for its hybrids, but US tariff hit looms