Toyota posted its first profit gain in six quarters and lifted its annual outlook by 15% thanks to a weaker yen and strong hybrid demand, offsetting sales declines in China and the Middle East. The higher‑margin hybrid models were the main driver of the improvement.

The company now expects operating profit of 3.9 trillion yen for the year ending March, after a 34 % rise in income during the July‑September quarter. For that quarter, operating profit reached 1.13 trillion yen, beating the median analyst forecast of 992 billion yen.

Shares rose about 8 % before the results and surged over 14 % in afternoon trade, marking the biggest one‑day gain since 2008. Chief accounting officer Takanori Azuma said Toyota offset higher fuel prices from the Middle East war and rising material costs through sales efforts and cost reductions.

Unlike other traditional car makers that went all‑in on electric vehicles and later wrote down billions when EV demand softened, Toyota has kept its strategy centered on petrol‑electric hybrids, a choice that has helped protect market share and profit. The lesson is that a focused hybrid strategy can deliver strong financial performance even as the industry explores full‑electric alternatives.