TM shares rise more than 9% after Q2 earnings as higher profit guidance, stronger hybrid sales and expanded shareholder returns bolster its investment appeal.

Toyota's revenue momentum has reaccelerated to 11.8% YoY growth in 2027Q1, with gross margin improving to 18.0% from 15.1% in the prior quarter, suggesting effective cost management and operating leverage.
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue growth accelerated to 11.8% YoY in 2027Q1, with gross margin improving to 18.0% from 15.1% in the prior quarter, though operating margin at 7.9% remains below the 10%+ levels seen in early 2025.
Recent earnings exceeded expectations, with some analysts upgrading to 'strong-buy' and a DCF-based fair value of $400.81.
Toyota has a Value Score of A from Zacks and a P/E ratio below the US market average.
Elevated gas prices could boost demand for Toyota's higher-margin hybrid vehicles.
Recent revenue misses and low net margins compared to competitors raise concerns.
Stock trading below declining SMAs (20 and 50), near recent lows.
Some analysts downgraded to 'hold' ratings, with Zacks expecting 'inline return'.
Trailing total returns as of 11/7/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q4 2026Latest Nov 5, 2026 | $4.10+21.7% vs $3.37 | $84.8B+0.1% vs $84.7B |
Q3 2026 Aug 4, 2026 | $7.57+61.8% vs $4.68 | $85.8B+6.4% vs $80.7B |
Q2 2026 May 8, 2026 | $4.00+28.6% vs $3.11 | $80.4B+1.1% vs $79.6B |
Q1 2026 Feb 6, 2026 | $6.26+43.9% vs $4.35 | $85.8B+3.4% vs $83.0B |
TM shares rise more than 9% after Q2 earnings as higher profit guidance, stronger hybrid sales and expanded shareholder returns bolster its investment appeal.

Las versiones Woodland reciben una nueva suspensión, lo que les otorga una distancia al suelo de 9,1 pulgadas (frente a las 8,1 pulgadas de todas las versiones
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Woodland Grades Receive New Suspension, Giving it a 9.1-inch Ground Clearance (vs. 8.1-inches on all grades except GR SPORT) and Redesigned All-Weather Floor/Cargo Mats North American Charging Standard (NACS) Port Added to All 2027 Plug-in Hybrid (PHEV) Models for DC Fast-Charging Capability 11-kW Onboard Charger Becomes Standard Across All PHEV Models RAV4 Woodland Grade has Standard Electronic On-Demand All Wheel Drive, All-Terrain Tires, Roof Rails with Cross Bars, Tow Hitch Receiver, and Choice of Hybrid Electric Vehicle (HEV) or PHEV Powertrain RAV4 GR SPORT Grade has GR-tuned Suspension and Steering, Functional Aerodynamics, Standard PHEV Powertrain with AWD, Sport Seating, and More PLANO, Texas, Nov. 5, 2026 /PRNewswire/ -- The 2027 RAV4 remains Toyota's benchmark small SUV, offering a fully electrified lineup in a choice of HEV and PHEV powertrains, available FWD or AWD, and a broad range of grades tailored to different driving lifestyles.
Benchmark TM against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Toyota Motor Corporation (TM)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $216.19 | $256.01B | 9.60 | 5.51% | 8.14% | 11.09% | 2.78% | |
| $86.16 | $77.93B | 19.47 | -1.29% | 2.1% | 6.13% | 0.78% | |
| $12.44 | $49.61B | -6.51 | 1.23% | -4.17% | -21.33% | 6.04% | |
| $4.43 | $12.84B | -0.59 | -22.33% | -8.26% | -31.87% | — | |
| $35.78 | $46.43B | -46.79 | 0.5% | -0.75% | -1.38% | 3.77% | |
| $358.22 | $1.41T | 394.17 | -2.93% | 3.11% | 3.73% | — |
Toyota Motor Corporation (TM) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
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Toyota Motor Corporation (TM) stock FAQ — growth, dividends, profitability & financials explained
Toyota Motor Corporation (TM) reported $53.67T in revenue over the trailing twelve months. Revenue was $50.68T in fiscal year 2026. That is 315% more than the $12.22T of fiscal year 1997.
Toyota Motor Corporation (TM) grew revenue by 8.7% over the trailing twelve months, compared with the twelve months before.
Yes. Toyota Motor Corporation (TM) earned $4.37T in net income over the trailing twelve months (a 8.1% net margin).
Yes. Toyota Motor Corporation (TM) pays a dividend that yields 2.78% at the current price, a moderate yield.
Toyota Motor Corporation (TM) had a return on equity (ROE) of 11.1% over the trailing twelve months. That is in line with the market's typical 10-15%.
Toyota Motor Corporation (TM) had negative free cash flow of $1.18T over the trailing twelve months.