Toyota Q2 Operating Profit Jumps 34% as Automaker Raises Full-Year Forecast and Expands Buyback

Toyota Motor reported a 34% rise in second-quarter operating profit, its first profit increase in six quarters, beating analyst estimates and prompting the Japanese automaker to lift its annual earnings guidance and expand its share buyback program. The results were driven by a weaker yen and aggressive cost reductions, which more than offset disruptions tied to the Middle East conflict that have weighed on the company's sales and supply chain.

Strong demand globally supported the topline while currency tailwinds amplified yen-denominated earnings for Toyota, which earns the bulk of its revenue overseas. The company flagged that Middle East-related disruptions continued to act as a drag, though the improved quarterly performance gave management enough confidence to raise the full-year outlook and reward shareholders with an enhanced buyback commitment.