Toyota (TM) reported fiscal first-quarter results on Tuesday that topped estimates for revenue and net income, and the world's largest automaker raised its full-year profit forecast and announced a share buyback even as U.S. tariffs and softer sales hit operating profit.

Toyota now sees full-year operating income at 3.4 trillion yen ($21.3 billion) for the financial year ending March 2027, up from a previous forecast of 3 trillion yen ($18.8 billion), this follows last quarter's 20% cut its outlook. The boost also comes after US rivals GM and Ford lifted their yearly guidance too.

"This revision reflects changes in the external environment, including foreign exchange assumptions, as well as the cumulative impact of our marketing efforts, such as establishing alternative logistics routes to the Middle East," Toyota said.

The forecast does not yet include any impact from the 2026 Kumamoto Earthquake, which Toyota said it is still assessing.

Toyota also announced a share repurchase authorization of up to 1 trillion yen ($6 billion).

The guidance boost and share repurchase plan come on the back of strong results, however Toyota stock is only little changed in early trade.

Toyota reported adjusted sales revenue of 13.53 trillion yen ($84.5 billion) for fiscal Q1 vs. 13.06 trillion yen ($81.6 billion) per Bloomberg consensus, up 10% compared to a year ago

Toyota posted net income of 1.48 trillion yen ($9.2 billion), well above consensus of 1.04 trillion yen ($6.5 billion), and up 76% from last year. Toyota cited factors like other income and a much weaker yen, which averaged 160 to the dollar in the quarter versus 145 a year earlier.

However, operating income fell 8.8% to 1.06 trillion yen ($6.6 billion), with the operating margin narrowing to 7.9% from 9.5% a year earlier, as tariffs and the situation in the Middle East added costs.

"Despite the impact of the situation in the Middle East, we maintained operating income at a level comparable to the same period of the previous fiscal year, supported by foreign exchange effects, cost reduction, expanded value chain profits, and increased sales of our highly competitive HEVs," Toyota said.

Toyota's earnings follow sales and production figures the company released last week. Global sales, including Lexus, fell 2.9% in the first half of 2026 to 5.01 million vehicles, the first January-June decline in two years.

Toyota also aims to onshore much of its production, including to the US. Last month, Toyota said it will invest $3.6 billion to add a second assembly line at its San Antonio plant, creating 2,000 jobs and shifting Tacoma production out of one of its Mexico plants and into Texas over the next four years. The San Antonio plant will eventually be the exclusive US home of Tundra, Sequoia, and Tacoma production.

The move comes after the White House said it wouldn't renew the landmark USMCA trade deal between the US, Mexico, and Canada, with negotiations ongoing.

Pras Subramanian is Lead Auto Reporter for Yahoo Finance. You can follow him on X and on Instagram.

Click here for the latest stock market news and in-depth analysis, including events that move stocks

Read the latest financial and business news from Yahoo Finance