Ford (NYSE: F) Raises 2026 Profit Outlook After Q2 Adjusted EBIT Climbs 19% Despite Revenue Dip

Ford Motor Company (NYSE: F) reported Q2 2026 results on July 28, 2026, posting adjusted EBIT of $2.5 billion, up $0.4 billion year over year, even as revenue fell 3.8% to $48.3 billion. The automaker simultaneously raised its full-year 2026 adjusted EBIT guidance to $10.0 billion to $11.0 billion, from a prior range of $8.5 billion to $10.5 billion.

Q2 2026 Results

• Adjusted EPS of $0.42 beat the $0.36 consensus estimate by 16.7%, up from $0.37 in Q2 2025.
• Revenue of $48.3 billion declined $1.9 billion year over year, reflecting lower wholesale volumes of 1,039,000 units (down 12% from 1,185,000 units in Q2 2025), product discontinuations, aluminum supply constraints, and reduced Gen-1 EV volumes.
• Adjusted EBIT margin expanded to 5.2% from 4.3% in Q2 2025, a gain of 0.9 percentage points.
• GAAP net loss of $1.3 billion (GAAP diluted EPS of -$0.33) included $4.2 billion of pre-tax special item charges, of which $3.6 billion was a largely non-cash charge tied to the previously announced disposition of the BlueOval SK battery joint venture, plus $0.5 billion related to EV program cancellations announced in December 2025.
• Operating cash flow of $4.3 billion in the quarter; adjusted free cash flow of $2.1 billion. Ford ended the quarter with $22.3 billion in cash and $43.4 billion in total liquidity.

What Drove the Results

Adjusted EPS of $0.42 beat the $0.36 consensus by 16.7%, while revenue of $48.3 billion came in below prior-year levels due to lower wholesale volumes and aluminum supply disruptions from Novelis. The divergence between a falling revenue line and rising adjusted profitability reflects meaningful segment-level mix improvement.

Ford Blue, the gas and hybrid vehicle segment, generated EBIT of $1,135 million on revenue of $26.1 billion, up $474 million year over year, as off-road trims reached nearly a quarter of U.S. Ford sales. Ford Model e posted an EBIT loss of $919 million, an improvement of $410 million versus Q2 2025, marking its third consecutive quarter of year-over-year EBIT improvement. Ford Pro, the commercial vehicle segment, saw EBIT decline $600 million year over year to $1,718 million on $17.8 billion of revenue, primarily reflecting temporary aluminum supply constraints from Novelis. Ford Credit contributed earnings before taxes of $757 million, up $112 million year over year.

The GAAP net loss of $1.3 billion diverged sharply from the adjusted profit figure, driven by the $3.6 billion non-cash BOSK joint venture disposition charge. Stripping out that item and the EV program cancellation charges, the underlying operating performance showed year-over-year improvement across two of three vehicle segments.

Full-Year 2026 Guidance

Ford raised full-year 2026 adjusted EBIT guidance to $10.0 billion to $11.0 billion, up from the prior range of $8.5 billion to $10.5 billion. Adjusted free cash flow guidance was lifted to $6.0 billion to $7.0 billion, from $5.0 billion to $6.0 billion. Capital expenditure guidance was left unchanged at $9.5 billion to $10.5 billion.

By segment, Ford now targets Ford Blue EBIT of $5.0 billion to $5.5 billion (raised from $4.5 billion to $5.0 billion), Ford Pro EBIT of $7.0 billion to $7.5 billion (raised from $6.5 billion to $7.5 billion), and a Ford Model e loss of approximately $4.0 billion, narrowed from a prior loss range of $4.0 billion to $4.5 billion. Ford Credit earnings before taxes are now expected above $2.5 billion. The company also declared a third-quarter regular dividend of $0.15 per share, payable September 1 to shareholders of record on August 11.

Investor Takeaway

The results demonstrate that Ford's profitability improvement is being driven by product mix and cost discipline rather than volume growth, a distinction that matters for the stock's longer-term earnings trajectory as the Novelis aluminum supply situation is expected to become a net EBIT tailwind, heavily weighted to the second half of 2026. Shares gained 1.91% on July 28 while the S&P 500 added 0.24%, with the stock also moving higher in after-hours trading on the raised guidance. Investors should note that Ford's full-year adjusted free cash flow outlook now includes approximately $500 million in expected 2026 cash recovery of an IEEPA tariff reimbursement recorded in Q1, a one-time item that inflates the free cash flow range relative to pure operating performance.