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Tesla reported Q3 FY2026 revenue of $28.0 billion, above the $27.8 billion consensus and down from $28.1 billion a year earlier. Adjusted earnings per share, as the consensus counts them, were $0.48, above the $0.45 estimate.
Tesla’s filing attributed lower automotive sales revenue partly to fewer Model S and Model X deliveries after their production ended, offset in part by higher FSD subscription revenue and currency effects. Regulatory-credit revenue also fell, while services and other revenue rose on used-vehicle sales, maintenance, collision work and paid charging.
The filing said energy generation and storage revenue declined partly because of tariff refunds for some Megapack customers, lower Megapack prices and fewer Powerwall deployments. Total gross margin rose to 19.6% from 18.0%, while operating margin fell to 2.56% from 5.78%. Tesla attributed higher research and development expenses partly to spending on AI and other programs, including Optimus and battery technologies. Free cash flow fell to $1.5 billion from $4.0 billion.
| Q3 FY2026 | Q3 FY2025 | Change | |
|---|---|---|---|
| Revenue | $28.0 billion | $28.1 billion | −0.17% |
| Diluted EPS | $0.22 | $0.39 | −43.6% |
| Gross margin | 19.6% | 18.0% | 1.6 percentage points |
| Operating margin | 2.56% | 5.78% | −3.2 percentage points |
| Free cash flow | $1.5 billion | $4.0 billion | −61.6% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $0.48 | $0.45 | Beat by 6.67% |
| Revenue | $28.0 billion | $27.8 billion | Beat by 0.96% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
An earnings call is not available. In its filing, Tesla said trade policy and geopolitical conflicts created uncertainty for automotive and energy markets, and that it was investing in research and development while working to reduce costs and localize its supply chain.
Guidance
A comparison with previous management guidance is unavailable. In its filing, Tesla expects capital expenditures in excess of $20.0 billion in 2026, driven by investments including computing infrastructure, data centers and manufacturing facilities.