Toyota remains a buy with strong FY 2026 outlook despite recent share weakness and bearish technicals.

Toyota Motor's shares are considered a buy, trading at an attractive near-10x price-to-earnings ratio despite recent underperformance compared to global markets. The company raised its FY 2026 operating income guidance to 3.8 trillion yen and expects vehicle sales of 9.75 million units, indicating a robust outlook. While near-term earnings per share (EPS) growth is negative, growth is expected to resume by FY 2028, with EPS potentially reaching $25. However, technical indicators are bearish, with shares below key support levels and a weak relative strength index (RSI), prompting close monitoring of support at $192 and resistance at $211 ahead of the Q3 report.