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Toyota Stock Rises 2% as Earnings Beat Estimates Despite Tariff Headwinds

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TLDR

  • Toyota reported Q3 operating profit of $7.6 billion, beating Wall Street estimates of $6.7 billion as higher prices and a weaker yen offset U.S. tariff impacts.
  • The automaker raised its full-year profit forecast by $2.6 billion to $24.2 billion, citing strong sales and cost-cutting measures.
  • Toyota stock rose 2% in overseas trading following the earnings beat despite implied Q4 guidance falling below analyst projections.
  • CEO Koji Sato will step down and be replaced by CFO Kenta Kon, with Sato moving to vice chairman and chief industry officer roles.
  • The company trimmed annual vehicle sales forecast to 9.75 million units from 9.8 million due to production disruptions in Brazil and continued U.S. tariff pressure.

Toyota stock climbed 2% in Friday trading after the Japanese automaker reported fiscal third-quarter earnings that crushed Wall Street expectations. The strong results came despite ongoing pressure from U.S. tariffs.

The company posted operating profit of ¥1.2 trillion ($7.6 billion) for the quarter ending December 31. Analysts had projected just $6.7 billion.

Higher vehicle prices helped the automaker maintain profitability. A weaker yen also provided a boost to the bottom line.

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Toyota Motor Corporation, TM

Toyota’s U.S.-listed American depositary receipts gained 1.8% in premarket trading. The stock has climbed 25% over the past 12 months.

Tariff Impact Less Severe Than Expected

U.S. import duties on Japanese vehicles remain at 15% after President Donald Trump reduced them from an initial 25% following a trade deal with Tokyo. Many analysts feared these tariffs would severely damage Toyota’s profit margins.

The third-quarter results showed those fears were overblown. Toyota managed to offset the tariff costs through pricing power and currency benefits.

Revenue grew nearly 8% year-over-year to ¥13.5 trillion. Net income fell 40% to ¥1.3 trillion, reflecting increased costs and investment spending.

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The automaker increased its full-year profit forecast by ¥400 billion ($2.6 billion) to ¥3.8 trillion ($24.2 billion). The raised guidance reflects better-than-expected performance in the first three quarters.

Mixed Outlook for Fourth Quarter

Toyota’s implied fourth-quarter operating profit guidance sits at approximately $3.8 billion. Wall Street analysts currently project $5.6 billion for the period.

Last year, Toyota reported $7.7 billion in operating profit during the fiscal fourth quarter. The company’s fiscal year runs through March 31.

Toyota trimmed its annual vehicle sales forecast to 9.75 million units from 9.8 million. Production disruptions in Brazil contributed to the reduced outlook.

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Chinese sales continue to face pressure as diplomatic tensions between Tokyo and Beijing persist. U.S. tariffs remain a headwind despite the recent reduction.

Leadership Transition Announced

Toyota announced a major leadership change alongside its earnings report. CEO Koji Sato will step down from his position.

CFO Kenta Kon will take over as chief executive. Sato will remain with Toyota as vice chairman and chief industry officer.

The leadership transition comes as Toyota navigates a challenging global trade environment. The company continues implementing cost-cutting measures to maintain profitability.

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Foreign exchange movements provided tailwinds during the quarter. The yen’s weakness against the dollar helped offset some cost pressures.

Car stocks have performed well recently despite tariff concerns. Ford Motor stock is up 48% over the past year, while General Motors has gained 74%.

Toyota’s strong quarterly results and raised full-year guidance were enough to satisfy investors on Friday. The company’s ability to beat estimates while managing tariff headwinds demonstrates pricing power in a difficult environment.

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Alphabet (GOOG) Stock: Pentagon to Receive Gemini AI Agents for 3 Million Defense Personnel

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Key Highlights

  • Pentagon’s complete 3 million-person workforce will gain access to Google’s Gemini AI agents
  • Initial rollout targets unclassified systems, while discussions progress for classified network integration
  • Platform offers eight pre-configured agents designed for budget creation, meeting notes, and strategic planning
  • Defense Department users have generated 40 million prompts through Google’s AI interface since its December debut
  • Training completion remains limited to just 26,000 personnel despite significantly higher adoption rates

Google, owned by Alphabet, has initiated a comprehensive deployment of its Gemini AI agent technology throughout the United States Department of Defense, encompassing approximately three million personnel.


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Alphabet Inc., GOOGL

The initial phase focuses on unclassified network infrastructure, where the majority of Defense Department personnel operate daily. Emil Michael, serving as under secretary of defense for research and engineering, indicated this strategic starting point.

Michael revealed that negotiations with Google are currently active regarding expansion into classified and top-secret cloud computing environments.

Google Vice President Jim Kelly made the announcement public through a Tuesday blog entry. Defense personnel will have the capability to create customized AI agents through natural language commands, eliminating any programming requirements.

The platform launches with eight ready-to-deploy agents. These automated assistants handle functions including meeting documentation, financial planning, and verification of proposed initiatives against national defense objectives.

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Certain agents are designed to provide operational value, assisting with logistical planning and resource forecasting for military operations — capabilities available even on unclassified infrastructure.

Google’s conversational AI interface on the GenAI.mil website has been operational since December. During this period, 1.2 million Defense Department personnel have engaged with the system, generating 40 million distinct queries and submitting over four million documents.

The usage volume demonstrates significant adoption. The Gemini agent platform becomes accessible through this identical portal starting Tuesday.

Personnel Education Falls Short of Adoption Rates

A significant challenge exists. Just 26,000 Pentagon employees have completed formal instruction on appropriate AI utilization. Upcoming educational programs have reached capacity, a Pentagon representative confirmed.

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Michael emphasized the importance of proper training. “It saves you a lot of time in the middle, but you have to review at the end to make sure there’s no hallucinations,” he said.

Bridging the divide between actual usage and completed training represents a priority as the Defense Department expands agent availability.

Military Exercise Planning Sees Dramatic Efficiency Gains

The technology has already demonstrated measurable impact in operational settings. Kenneth Harvey, who directs the Mission Training Complex at Fort Bragg, explained that developing a military exercise scenario accommodating up to 50,000 simulated troops previously required his nine-member team six months.

Leveraging the AI platform, a comparable exercise for US Southern Command reached completion within six weeks.

Harvey emphasized that “human eyes vetted every word” throughout the process.

This latest initiative represents a significant expansion of collaboration between Google and the Pentagon, a relationship that has experienced turbulence. In 2018, thousands of Google staff members protested the corporation’s participation in Project Maven, an AI-powered drone surveillance initiative. Google declined to continue that contract.

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The technology company subsequently revised its policies regarding military contracts. Michael characterized Google as a “trusted” and “supportive” partner.

The Pentagon has simultaneously broadened its artificial intelligence partnerships. Recent agreements with OpenAI and Elon Musk’s xAI enable operations on restricted networks — developments that coincided with deteriorating relations with Anthropic.

The Department of Defense designated Anthropic a supply-chain security concern last week following the company’s objections regarding potential AI applications. Anthropic has responded by filing legal action against the government challenging this classification.

Prior to this conflict, Anthropic maintained exclusive status as the sole AI vendor with access to the Pentagon’s classified cloud infrastructure.

GOOG was trading at $308.84, up 0.81% on the day at the time of writing.

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Canaan Boosts Bitcoin, Ether Treasury as Miners Sell BTC

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Canaan Boosts Bitcoin, Ether Treasury as Miners Sell BTC

Bitcoin mining company Canaan increased its digital asset holdings to record levels in February, signaling a long-term accumulation strategy despite challenging market conditions for miners.

In its February unaudited mining update issued Tuesday, Canaan said it produced 86 Bitcoin (BTC) during the month, bringing its total holdings to 1,793 BTC, a new record for the company.

Canaan’s Ether (ETH) holdings also reached a record high of 3,952 ETH, with the combined value of its digital asset treasury totaling roughly $128 million at current prices.

The company’s Nasdaq-traded shares (CAN) were up 1% in late Tuesday morning trading. Sector-tracking exchange-traded fund CoinShares Bitcoin Mining ETF (WMGI) was up 2.5%.

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Chairman and CEO Nangeng Zhang said the company remains focused on a long-term strategy of building its digital asset reserves.

“We maintain a long-term perspective on building and managing our digital asset treasury,” Zhang said.

Canaan’s Bitcoin holdings over time. Source: BitcoinTreasuries.NET

Canaan also expanded its mining operations, with its installed hashrate reaching 14.75 exahashes per second (EH/s).

The update follows Canaan’s recent expansion in the United States. In February, the company acquired a 49% stake in three Bitcoin mining projects in West Texas for $39.75 million, a move aimed at increasing its North American mining capacity.

The Texas facilities are expected to boost Canaan’s presence in one of the world’s largest Bitcoin mining regions.

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Related: Bitcoin miner production data reveals scale of US winter storm disruption

Miners ramp up Bitcoin sales as margins tighten

Canaan’s update comes as Bitcoin miners increasingly sell portions of their reserves amid worsening market conditions.

The trend has accelerated since October, when the biggest crypto by market capitalization peaked around $126,000 before falling by more than half to the low-$60,000 range, squeezing mining profitability.

The downturn has compounded what some analysts describe as the harshest margin environment the sector has faced, with rising operational costs and lower BTC prices weighing on miners’ balance sheets.

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Data from TheEnergyMag’s Miners Weekly shows that publicly traded mining companies have sold more than 15,000 BTC since October. The total includes several large transactions, such as Cango’s February sale of 4,451 BTC and Core Scientific’s plan to sell up to 2,500 BTC this quarter.

Bitcoin miners have offloaded a growing share of their BTC holdings since October. Source: TheEnergyMag

The shift marks a departure from the trend seen earlier in 2025, when many miners adopted a de facto treasury strategy, choosing to retain a larger share of the Bitcoin they mined rather than selling it immediately.

Related: Bitcoin mining’s 2026 reckoning: AI pivots, margin pressure and a fight to survive