Ford stock rises as automaker hikes full-year guidance, beats on Q2 earnings
Ford said pricing, improved product mix, and net tariff exposure led to the guidance raise.
Pras Subramanian· Senior Reporter
Wed, July 29, 2026 at 1:21 PM GMT+5:30
3 min read
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Ford (F) shares rose on Wednesday after the Big Three automaker reported second quarter results that topped expectations, in addition to upbeat guidance driven by strong profit growth
The financial update came as investors questioned whether Ford’s management could follow rival General Motors (GM) in lifting its full-year outlook
Ford reported Q2 automotive revenue of $44.89 billion on Tuesday, versus $44.72 billion expected per Bloomberg consensus, with adjusted EPS of $0.42 versus $0.36 expected. Adjusted EBIT came in at $2.5 billion compared to $2.15 billion estimated, translating to an adjusted EBIT margin of 5.2%, up a strong 0.9% compared to a year ago
The big quarter and outlook for the back half allowed Ford to raise its guidance, with the automaker now seeing full-year adjusted EBIT of $10 billion to $11 billion (from $8.5 billion to $10.5 billion) and adjusted free cash flow of $6.0 billion to $7.0 billion (from $5.0 billion to $6.0 billion)
Ford stock popped almost 4% in premarket trade as investors assessed the earnings, after jumping over 8% soon after its release
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Ford CFO Sherry House said in a press call that pricing, an improved mix including higher-priced SUVs, and net tariff exposure led to the guidance raise. Ford said its cash flow outlook includes $500 million of the $1.3 billion International Emergency Economic Powers Act (IEEPA) reimbursement recorded in the first quarter. House said the remaining $800 million would come in 2027
Ford also said the Novelis plant fire, which affected F-150 production, would have a year-over-year impact of about $1 billion, which would be a “net EBIT tailwind heavily weighted to the second half.”
House added that Ford’s net tariff cost for the year would be “better than a billion.”
Ford’s guidance hike follows rival GM’s similar move last week. GM said its updated guidance made key assumptions, including pricing up around 0.5%, EV losses improving by $1 billion to $1.5 billion, regulatory benefits of $500 million to $700 million, gross tariff costs of $2.5 billion to $3.5 billion, and commodity inflation (including DRAM) of $1.5 billion to $2 billion, among others
Ford did record a net loss, however, due to $4.2 billion in charges taken in its EV business. “Over $3 billion of this charge ($3.6 billion) is non-cash. Second, dispositioning of this JV [BlueOval SK battery unit] clears the runway to repurpose those manufacturing assets for Ford Energy,” House said, referring to Ford’s new energy storage business meant for data centers and utilities
