It now expects to make a net profit of 1.48tn yen ($14.8bn; £9.8bn) for the current financial year, up from its earlier projection of 1.37tn yen.
The carmaker raised the outlook as it said earnings for the April to June quarter had jumped 93% from a year ago.
Many Japanese firms have seen a surge in profits thanks to the weakening yen.
The yen has fallen by nearly 25% against the US dollar since November, after the government unveiled a series of aggressive policy moves.
A weak currency not only makes Japanese goods more affordable to foreign buyers but also helps to boost profits of exporters when they repatriate their foreign earnings back home.
On Friday, Toyota reported a net profit of 562bn yen in the three months to the end of June, up from 290bn yen during the same period last year.
The company said that cost cutting measures had also helped to lift its earnings during the quarter.
“Operating income increased due to the impact of foreign exchange rates and our global efforts for profit improvement, through cost reduction activities such as companywide value analysis,” Takuo Sasaki, chief marketing officer for Toyota, said in a statement.
He added that the “enhancement of the model mix and pricing” had also helped to boost profits.
Toyota also set a worldwide production target of 10.1 million vehicles for the 2013 calendar year, which would be a record across the industry.
Race to the top
It kept its sales goal for the year at 9.96 million vehicles, making it a close race with US rival General Motors for the title of world’s top carmaker.
Toyota said it sold 1.3 million vehicles in the US, its biggest market, in the January to July period, up 8% from a year ago.
The US accounts for nearly a quarter of Toyota’s global sales.