Ford Motor Company
F · NYSE
Next quarter
Expected to report Feb 9, 2027 — estimated from last year’s reporting date.
Consensus is $0.38 EPS for Dec 2026 across 7 estimates, ranging $0.33 to $0.44.
F Sep 2026
- 25.64%
- +3.43%
- $0.39
- $0.49
- —
- $49.53B
Reported results
- $49.53B
- 14.90%
- $1.45B
- 2.94%
- $2.05B
- $0.50
Highlights
- Earnings beat and guidance: Adjusted EPS of $0.49 exceeded the $0.39 consensus by 25.6%; Ford raised the low end of 2026 adjusted EBIT guidance by $0.5 billion to $10.5 billion–$11 billion.
- Revenue and earnings: Q3 revenue was $49.5 billion, down 2% year over year but up from $48.3 billion in Q2; adjusted EBIT was $2.7 billion, up 3% year over year, while GAAP net income was $2.0 billion versus $2.4 billion a year ago.
- Cash generation: Adjusted free cash flow reached $4.7 billion, up from $4.3 billion a year ago and $2.1 billion in Q2; operating cash flow was $5.4 billion, down from $7.4 billion a year ago.
- Ford Blue and Pro: Blue EBIT fell 10% to $1.4 billion on lower volume and higher costs; Pro EBIT declined 16% to $1.7 billion, primarily on commodity costs and temporary Oakville launch expenses.
- Model e: The segment’s EBIT loss narrowed by $352 million year over year to $1.1 billion despite a 31% decline in wholesales and revenue; Ford continues to target breakeven by 2029.
- Ford Energy: Contracts and late-stage negotiations together represent more than 80% of planned 2028 capacity; Ford remains on track to bring 20 GWh of annual capacity online by the end of 2027.
- Ford Credit: EBT rose 27% to $803 million, supported by derivative valuation gains, healthy financing margins and used-vehicle pricing; Ford raised its full-year EBT outlook to about $2.8 billion.
- Liquidity and shareholder returns: Ford ended Q3 with $25.3 billion in company cash and $46.4 billion in liquidity, and declared a regular dividend of $0.15 per share for Q4.
Analysis
Ford delivered a better-than-expected third quarter, with adjusted EPS of $0.49 versus the $0.39 consensus and adjusted EBIT of $2.7 billion, up 3% year over year. Revenue was $49.5 billion, 2% lower than a year ago but higher than Q2’s $48.3 billion. GAAP net income of $2.0 billion fell from $2.4 billion a year ago, while diluted EPS was $0.50 versus $0.60; sequentially, Ford returned to profit after Q2’s $1.32 billion net loss and $0.33 loss per share. Adjusted EBIT margin improved to 5.4% from 5.1% a year ago.
The print centered on resilient cash generation and a modest guidance raise despite falling wholesale units, commodity inflation and segment pressure. Adjusted free cash flow was $4.7 billion, while Ford raised the low end of its 2026 adjusted EBIT range to $10.5 billion and maintained adjusted free cash flow guidance of $6 billion–$7 billion. Blue and Pro remained profitable but earned less than a year ago; Model e reduced its loss as it resized current EV operations. Ford also highlighted growing software, parts and energy-storage opportunities, including early customer commitments for Ford Energy’s planned 2028 capacity. Management said it currently expects 2027 profitability roughly in line with 2026, with about $2 billion of expected commodity, memory and logistics headwinds to offset through operating improvements and revenue optimization.
Earnings and guidance
- Quarterly result: Revenue of $49.5 billion declined 2% year over year, while adjusted EBIT increased 3% to $2.7 billion and adjusted EBIT margin expanded 0.3 percentage points to 5.4%. Adjusted EPS was $0.49, above the $0.39 consensus; GAAP diluted EPS was $0.50.
- GAAP comparison: Net income attributable to Ford was $2.05 billion, down from $2.45 billion a year ago. The $127 million of pretax special-item charges and higher taxes also distinguish GAAP earnings from adjusted results. Sequentially, revenue rose from $48.30 billion in Q2 and net income swung from a $1.32 billion loss to $2.05 billion of income.
- 2026 outlook: Ford raised the low end of adjusted EBIT guidance from $10 billion to $10.5 billion, retaining the $11 billion high end. Adjusted free cash flow guidance remains $6 billion–$7 billion and capital spending $9.5 billion–$10.5 billion.
- Assumptions and segment targets: Guidance assumes a 16.5 million U.S. SAAR, industry pricing up about 1%, commodity headwinds approaching $2.5 billion and $1 billion of material and warranty cost reductions, excluding tariffs and Novelis. Segment outlook is about $5.5 billion of Blue EBIT, $7 billion of Pro EBIT, a $4 billion Model e loss and $2.8 billion of Ford Credit EBT.
Blue and Pro performance
- Ford Blue: Revenue declined 3% to $27.1 billion and EBIT fell $148 million to $1.4 billion, with margin down to 5.1%. Discontinued products and lower volume, regional effects from the Middle East conflict and higher commodities weighed on results; favorable product mix partly offset them.
- Ford Pro: Revenue increased 2% to $17.8 billion despite 4% fewer wholesales, but EBIT decreased $320 million to $1.7 billion and margin was 9.4%. Higher commodities and temporary costs from the Super Duty launch at Oakville drove the decline, partly offset by favorable mix and lower tariffs.
- Production and inventory: Ford said Novelis-related production recovery was progressing as planned, with a net $1 billion tailwind still expected for 2026. F-150 inventory was 49 retail days at quarter-end, below Ford’s target range; management expected stocks to return to target levels by year-end.
EV transition and energy
Model e’s $1.1 billion EBIT loss improved by $352 million year over year as Ford reduced losses on first-generation EVs and benefited from lower volume and better pricing, though wholesales fell 31% to 34,000 and revenue fell 31% to $1.2 billion. Ford said it remains on track to improve Gen 1 EBIT by about 40% in 2026 and still targets Model e breakeven by 2029; the improvement path is not expected to be linear, with the next major step-up anticipated in the first half of 2028 as UEV and Ford Energy ramp.
The first UEV vehicle, Fathom, is scheduled for launch in Q4 2027, with a starting price management described as below $30,000. Ford said 90% of validation testing was complete and its main remaining launch risk was supplier readiness. For Ford Energy, trial production milestones are progressing at the Kentucky battery plant, and more than 80% of planned 2028 capacity is covered by executed contracts and late-stage negotiations. The company expects 20 GWh of annual capacity online by the end of 2027 and expects 2028 capacity to be fully committed by Q1 2027.
Services and Ford Credit
- Software and parts: Both businesses achieved record Q3 revenue, and together contributed about 10% of quarterly revenue at accretive margins, according to management. BlueCruise, connectivity and Ford Pro Intelligence were key software growth drivers; U.S. wholesale parts revenue grew at a double-digit rate.
- Ford Credit: EBT increased $172 million year over year to $803 million, reflecting favorable derivative valuations, healthy financing margins and supportive used-vehicle pricing. The U.S. loss-to-receivables ratio rose to 67 basis points from 62 a year ago, while auction values were down 3% year over year.
- Full-year outlook: Ford raised its Ford Credit EBT expectation to about $2.8 billion. Management also noted that software and parts growth should add recurring, countercyclical revenue as the company invests in vehicles and energy storage.
Cash and capital
Adjusted free cash flow was $4.7 billion, compared with $4.3 billion in Q3 2025 and $2.1 billion in Q2 2026. Ford attributed the year-over-year increase primarily to higher Ford Credit distributions and favorable timing and working-capital effects, which offset lower adjusted EBIT excluding Ford Credit and higher net spending, tax and interest payments. GAAP operating cash flow was $5.4 billion, down $2.0 billion year over year, primarily because Ford Credit operating cash flow was lower.
Ford ended September with $25.3 billion in company cash and $46.4 billion in liquidity, versus $28.7 billion and $49.8 billion, respectively, at year-end 2025. The company declared a $0.15-per-share regular Q4 dividend, payable December 1. Management said 2027 profitability is currently expected to be roughly in line with 2026, while investments include the next F-150, the UEV platform and Ford Energy; it cited about $2 billion of expected commodity, memory and logistics cost headwinds for next year.
