Toyota Motor reported an 8.1% year-over-year revenue increase in Q2 of fiscal 2026, reaching ¥12.38 trillion ($80.5 billion), and net income soared 62% to ¥932 billion ($5.9 billion). The company’s gross profit margin of 17.9% and net margin of 9.4% outpace all major volume automakers except luxury specialist Ferrari. North America sales climbed 15% while overall unit volumes grew nearly 3%. With a forward price-to-earnings ratio of 14.1 compared with the sector median of 19.8, Toyota trades at a significant valuation discount to peers. The stock’s 31% gain over the past 12 months has outperformed the S&P 500’s 16.9% return, reflecting investor recognition of Toyota’s steady cash flows, strong balance sheet and renewed consumer enthusiasm for performance models such as the GR GT supercar.

Three Toyota affiliates have reached a proposed $436 million settlement in a U.S. class action accusing the companies of installing software in nine forklift engine models to circumvent emissions regulations. Under the agreement, vehicle owners and equipment operators can apply for compensation based on engine model and usage history, with payments expected to range from several thousand to tens of thousands of dollars per claimant. The settlement resolves litigation that alleged non-compliance in Tier 2 non-road engine standards dating back to model year 2014. Toyota has denied intentional wrongdoing but agreed to the settlement to avoid protracted litigation and additional regulatory scrutiny.