US automaker Ford reported second-quarter earnings ahead of Wall Street estimates and raised its financial outlook for the second time this year. The company cited higher vehicle prices and strong sales of sport utility vehicles as key drivers for the improved guidance.
Adjusted earnings for Q2 2026, beating analyst expectations.
Ford shares rose nearly 7% in after-hours trading following the results, while other reports indicated a 4% surge during regular trading. In premarket trading on Wednesday, the stock rose approximately 5.5%. Citi upgraded Ford to a buy rating with a price target of $20, representing a 34% upside from the prior close.
Revenue dip masks margin expansion
Total revenue for the quarter was $48.3 billion, a 4% decrease from $50.18 billion a year earlier. Automotive revenue stood at $44.89 billion, which was below the market forecast of $45.86 billion. Despite the revenue decline, Ford’s margins expanded, with adjusted EBIT margin reaching 5.2%.
The decline in revenue was attributed to lower wholesale volumes due to discontinued products, aluminum supply shortages, and a planned reduction in first-generation electric vehicle output. Wholesale unit sales fell 12% year-on-year to 1.039 million. In the US, vehicle sales dropped 10% from a year earlier.
Ford posted a net loss of $1.3 billion for the quarter, compared to a $36 million loss in the same period last year. Some reports stated the net loss was $1.32 billion against a $29 million prior year loss. The company incurred $4.2 billion in charges related to a pullback from EV investments, including $3.6 billion from BlueOval SK restructuring and $500 million from a canceled EV program.
Ford is becoming a more profitable, more disciplined and genuinely different company.
Segment performance and EV strategy
The Ford Blue segment recorded EBIT of $1.13 billion on revenue of $26.1 billion. Ford Pro posted EBIT of $1.71 billion, down $0.6 billion, on revenue of $17.8 billion. The Model e electric vehicle segment reported an EBIT loss of $919 million on revenue of $1 billion, marking its third consecutive quarter of year-on-year improvement.
Ford reduced expected losses at its Model e business to about $4 billion from a previous forecast of $4 billion to $4.5 billion. The company is building prototype cells in Marshall, Michigan, and its Ford Energy division is projected to reach 20 gigawatt-hours of annual capacity by late 2027.
Ford stated it is in the 'third inning' of selling out 2028 capacity for 20-foot containerized LFP solutions. The new Universal EV platform will feature a fully zoned electric architecture.
Supply chain recovery and guidance
F-Series pickup production recovery is on track after fires at aluminum supplier Novelis’ facility. This recovery is expected to improve operating profit by around $1 billion in 2026, with most of the benefit anticipated in the second half of the year. Ford anticipates clawing back roughly $2.5 billion of the vehicle volume lost due to the Novelis fires, which is the bottom of a previously stated range of $2.5 billion to $3 billion.
Novelis aluminum supply disruptions resulted in $800 million of temporary costs year-to-date, with the total full-year impact now estimated at $1.5 billion. Ford expects a $900 million incremental commodity headwind in the second half of 2026 compared to the first half.
Raised 2026 adjusted EBIT forecast, up from previous guidance.
Ford raised its 2026 adjusted EBIT forecast to between $10 billion and $11 billion. The company also increased its adjusted free cash flow outlook to $6 billion to $7 billion from $5 billion to $6 billion. The guidance assumes a US seasonally adjusted annual rate of 16 million to 16.5 million units and a 50-basis point increase in industry pricing.
Ford maintains its target of reducing material and warranty costs by approximately $1 billion. These savings are expected to be offset by similar investments in Universal EV and Ford Energy, as well as a roughly $1 billion Novelis-related impact weighted toward the second half.
The company’s net tariff cost for the full year 2026 is expected to be better than $1 billion. Ford’s 2026 guidance includes about $500 million of expected cash recovery from the $1.3 billion IEEPA reimbursement booked in the first quarter. CFO Sherry House stated the remaining $800 million would be received in 2027.
Ford declared a third-quarter regular dividend of $0.15 per share, payable September 1 to shareholders of record on August 11, 2026. The company’s guidance excludes impacts from significant escalation in the Middle East or a material US economic downturn.
Product mix and quality rankings
Strong US truck sales and off-road trim variants accounted for close to a quarter of US volumes. The off-road mix increased 4 percentage points year-over-year, driven by strength in the Bronco family. Regulatory changes allowed Ford to better match customer demand for higher-margin V8 and Raptor configurations.
Our iconic trucks, off-roaders and hybrids are commanding real pricing power.
Some brands are continuing to cater to customers that want mid-size SUVs, but in the US, there are plenty of buyers for more expensive full-size pickups and SUVs. Ford achieved the number one ranking among mainstream brands in the J.D. Power 2026 Initial Quality Study, with recall events down 40% year-over-year.
Ford’s paid subscriptions grew 50% year-over-year to approximately 1.6 million. BlueCruise accounts for 50% of retail integrated services revenue, with paid subscriptions growing 20% in the quarter. Apple Maps integration could expand to other Ford models in the future.
Ford Pro maintains market leadership in North America and Europe. The company’s Oakville expansion is on track to add 100,000 units of Super Duty capacity starting in the fourth quarter of 2026. Ford is preparing for a heavy new product launch period over the next three years, including all-new F-Series and Super Duty models.
Ford ratified a new three-year agreement in Canada. The company aims to reach an 8% margin target by 2029. For context, competitor General Motors raised its full-year 2026 adjusted EBIT forecast to $14 billion to $16 billion after also beating second-quarter expectations.