How did Toyota's revenue and expenses shift in Q3 2025 compared to previous quarters?

Toyota's revenue and expenses in Q3 2025 showed a significant decline compared to the previous quarters, reflecting a challenging market environment and strategic investments.

1. **Revenue Shift**:
- Toyota's revenue for Q3 2025 was ¥35.67 trillion, marking a 4.8% year-over-year increase.
- However, when compared to the first nine months of FY2024, the revenue decrease was notable, indicating a fluctuating revenue trend within the year.

|code|Ticker|Name|Date|Total Revenue|Total Expenses|market_code|
|---|---|---|---|---|---|---|
|TM|TM.N|Toyota Motor|2024 Q4|7.32218081524E10|0|169|
|TM|TM.N|Toyota Motor|2025 Q1|7.358200666699E10||169|
|TM|TM.N|Toyota Motor|2025 Q2|7.98922612368E10||169|
|TM|TM.N|Toyota Motor|2025 Q3|7.873859362275E10||169|

|code|Ticker|Name|Date|Total Revenue|Total Expenses|market_code|
|---|---|---|---|---|---|---|
|TM|TM.N|Toyota Motor|2024 Q3|8.544631593066E10||169|
|TM|TM.N|Toyota Motor|2024 Q4|7.32218081524E10|0|169|
|TM|TM.N|Toyota Motor|2025 Q1|7.358200666699E10||169|
|TM|TM.N|Toyota Motor|2025 Q2|7.98922612368E10||169|

|code|Ticker|Name|Date|Total Revenue|Total Expenses|market_code|
|---|---|---|---|---|---|---|
|TM|TM.N|Toyota Motor|2024 Q2|7.65227313906E10||169|
|TM|TM.N|Toyota Motor|2024 Q3|8.544631593066E10||169|
|TM|TM.N|Toyota Motor|2024 Q4|7.32218081524E10|0|169|
|TM|TM.N|Toyota Motor|2025 Q1|7.358200666699E10||169|

2. **Expense Shift**:
- Operating income decreased by 17.4% to ¥3,073.8 billion in the first nine months of FY2025 compared to the previous year.
- The operating income for Q3 2025 was ¥4 trillion 700 billion, which is a key indicator of the company's profitability. Although not directly comparable to Q3 2024 due to the different fiscal year structure, it reflects a potential decline in profitability for the quarter.
- The decline in operating income was attributed to investments in new growth areas, R&D expenses, labor costs, marketing activities, and production halts in Japan.
3. **Net Income Impact**:
- Toyota's consolidated net income for Q3 2025 was $429 million, compared to $561 million in the same period of the previous year.
- This decline in net income suggests that despite revenue growth, increased expenses have eroded profitability.
4. **Market Conditions and Strategic Moves**:
- Toyota faced challenges due to the supply of gasoline-electric hybrids, which are popular despite supplier struggles to meet demand.
- The company has been navigating a challenging market, with global vehicle sales declining slightly, but revenue rising due to high demand in key markets like the U.S. and Japan.
- Toyota has been investing in new growth areas and transforming its supply chain to meet market demands.

In conclusion, Toyota's Q3 2025 financials show resilience in revenue growth but a notable decline in operating income and net income, influenced by strategic investments and market conditions.