Toyota Motor Corporation reported a significant decline in net profit, revealing a 26% drop attributed to decreased vehicle sales and challenging market conditions in Japan and China. Despite these challenges, the company maintained its annual profit outlook. In its second-quarter 2025 earnings, Toyota reported revenue of $76.30 billion, surpassing expectations of $72.27 billion, and earnings per share of $2.88. The company's CEO, Makoto Uchida, announced a 50% pay cut in response to the disappointing results, while also indicating that a turnaround strategy is forthcoming. The broader automotive industry, including competitors Honda and Nissan, is facing similar profit pressures amid rising material costs and shifting market demands.