Latest quarter
Ford reported Q2 FY2026 revenue of $48.3 billion, down −3.76% from Q2 FY2025, while the consensus revenue measure was $44.9 billion versus a $45.7 billion consensus estimate. Ford reported adjusted EPS of $0.42, compared with consensus adjusted EPS of $0.33.
The filing shows diluted EPS of −$0.33, compared with −$0.01 a year earlier, while Ford recorded a $1.3 billion GAAP net loss that the company said included a one-time $3.6 billion special-item charge related to the BlueOval SK Battery Joint Venture disposition. The filing attributed the year-over-year adjusted EBIT increase to higher Ford Blue and Model e EBIT and improved Ford Credit EBT, partly offset by lower Ford Pro EBIT.
Ford Blue’s revenue increased 1% as favorable mix, exchange and net pricing partly offset lower wholesales, while Ford Pro revenue decreased 5% and its EBIT decreased to $1.7 billion amid lower volume and temporary aluminum-supply-disruption costs. Ford Model e revenue decreased 56% as wholesales fell. Gross margin was 12.6%, versus 11.8% a year earlier, and operating margin was 1.32%, versus 1.02%. Free cash flow was $2.0 billion, down −53.6% from a year earlier.
| Q2 FY2026 | Q2 FY2025 | Change | |
|---|---|---|---|
| Revenue | $48.3 billion | $50.2 billion | −3.76% |
| Diluted EPS | −$0.33 | −$0.01 | — |
| Gross margin | 12.6% | 11.8% | 0.8 percentage points |
| Operating margin | 1.32% | 1.02% | 0.3 percentage points |
| Free cash flow | $2.0 billion | $4.2 billion | −53.6% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $0.42 | $0.33 | Beat by 27.3% |
| Revenue | $44.9 billion | $45.7 billion | Missed by 1.81% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
Chief Executive Jim Farley said Ford’s strategy centered on its core automotive operations, software and physical services, and adjacent businesses including Ford Energy. Farley said the company planned to extend hybrids across its lineup over the next several years and that the Oakville expansion was on track to launch in the fourth quarter, adding up to 100,000 units of Super Duty capacity.
Chief Financial Officer Sherry House said Q2 revenue declined because of expected volume reductions from lower Novelis aluminum supply and the discontinuation of certain vehicles during portfolio refreshes. House attributed the quarter’s adjusted EBIT increase largely to mix and net pricing, and said Ford Blue’s revenue and EBIT gains reflected favorable product mix, regulatory changes and higher net pricing despite an 8% wholesale decline. She said Ford Pro’s $1.7 billion EBIT and $17.8 billion revenue reflected the temporary Novelis disruption, while Model e’s $919 million EBIT loss improved year over year through structural cost reductions, right-sized Gen 1 volumes and lower U.S. incentives.
On demand, Andrew Frick said Ford expected product and series mix to continue through the rest of the year, while Farley said F-Series inventory was around 45 days’ supply. Alicia Bowler-Davis said Ford expected to make up postponed Super Duty fleet orders in the second half and restore Ford Pro to its 2025 revenue run rate by year-end.
Analysts asked about the second-half earnings bridge and the aluminum disruption. House said Ford expected a net $1 billion EBIT improvement from the recovery, weighted toward the second half, but also expected unfavorable commodity pricing and accelerated investment in Ford Energy, the Universal EV platform and the Oakville launch. She said Ford had incurred about $800 million of Novelis-related temporary costs year to date and expected about $1.5 billion for the full year.
When asked about 2027, House said it was too early to discuss the year in detail. She identified the non-recurrence of temporary aluminum sourcing costs, future product-launch costs, Ford Energy and Universal EV investment, the non-recurrence of the IEEPA tariff benefit and commodity costs as factors, without providing 2027 financial guidance.
Guidance
Ford increased its FY2026 adjusted EBIT outlook to $10.0 billion–$11.0 billion from $8.5 billion–$10.5 billion. The company increased adjusted free-cash-flow guidance to $6.0 billion–$7.0 billion from $5.0 billion–$6.0 billion. Ford increased Ford Blue EBIT guidance to $5.0 billion–$5.5 billion from $4.5 billion–$5.0 billion and narrowed Ford Pro EBIT guidance to $7.0 billion–$7.5 billion from $6.5 billion–$7.5 billion. Ford changed its Model e outlook to a loss of approximately $4.0 billion from a loss of $4.0 billion–$4.5 billion, and said Ford Credit EBT would be above $2.5 billion rather than about $2.5 billion. House said Ford now expected U.S. industry pricing of plus 50 basis points for the full year, compared with the company’s prior flat-pricing assumption.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| Operating income, Novelis | FY2026 | $1.0 billion | — | New |
| Operating expenses, Material and Warranty | FY2026 | $1.0 billion | $1.0 billion | Held |
| Market size, U.s. | FY2026 | 16,000,000–16,500,000 | — | — |
| Operating income, Ford Credit | FY2026 | $2.5 billion | — | New |
| Operating income, Ford Model E | FY2026 | $4.0 billion | — | New |
| Operating income, Ford Pro | FY2026 | $7.0 billion–$7.5 billion | $6.5 billion–$7.5 billion | Raised |
| Operating income, Ford Blue | FY2026 | $5.0 billion–$5.5 billion | $4.5 billion–$5.0 billion | Raised |
| Capex | FY2026 | $9.5 billion–$10.5 billion | $9.5 billion–$10.5 billion | Held |
| Free cash flow, non-GAAP | FY2026 | $6.0 billion–$7.0 billion | — | New |
| Operating income, non-GAAP | FY2026 | $10.0 billion–$11.0 billion | — | New |
| Operating margin | FY2029 | 8.00% | — | New |
| Operating income growth, Model E Gen 1 | FY2026 | 40.0% | — | New |
| Operating income, Model E | FY2026 | $4.0 billion | $4.0 billion–$4.5 billion | Cut |
| Free cash flow | FY2026 | $6.0 billion–$7.0 billion | $5.0 billion–$6.0 billion | Raised |
| Operating income | FY2026 | $10.0 billion–$11.0 billion | $8.5 billion–$10.5 billion | Raised |
| Revenue growth, Software and Physical Services | through FY2030 | 8.00% | — | New |
| Units, US Industry | FY2026 | 16,000,000–16,500,000 | — | — |
| Operating income, Novelis Recovery | FY2026 | $1.0 billion | — | New |
| Capex, Ford Energy | FY2026 | $1.5 billion | — | New |