Despite ongoing U.S. trade tariffs, Toyota reported stronger-than-expected operating income for its fiscal third quarter. The world's largest automaker benefited from robust sales volumes and a weaker yen. Operating income reached 1.191 trillion yen ($7.6 billion), surpassing Bloomberg estimates. The company also raised its profit forecast for the fiscal year ending March 31st.

Toyota's net income, however, decreased by over 40% year-on-year, reaching 1.257 trillion yen. Revenue increased nearly 8% to 13.457 trillion yen. The company now anticipates an annual operating profit of 3.8 trillion yen, up from 3.4 trillion yen. This positive outlook reflects strong sales and cost-cutting efforts, even with some production disruptions and tariff impacts.

While Toyota's overall financial performance remains strong, the company has trimmed its annual vehicle sales forecast. Production challenges in Brazil and the persisting effects of U.S. import duties are contributing factors. Additionally, CEO Koji Sato will step down, with CFO Kenta Kon taking over the role. Sato will transition to Vice Chairman.