Ford raises 2026 outlook after Q1 earnings beat expectations

On the Dash:

• Ford beats Q1 expectations with strong pricing, mix and services growth.
• Tariff ruling delivers $1.3B benefit, helps offset rising aluminum costs.
• Company raises EBIT outlook while maintaining cautious stance on cash flow.

Ford raised its 2026 financial guidance Wednesday after reporting first-quarter earnings that beat Wall Street expectations, driven by strong pricing, product mix and growth in software and services.

The automaker posted adjusted earnings per share of 66 cents, topping estimates of 19 cents. Automotive revenue reached $39.82 billion, above expectations of $38.82 billion. Total revenue increased 6% year over year to $43.3 billion.

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Ford recorded adjusted earnings before interest and taxes (EBIT) of $3.5 billion, up from $1 billion a year earlier. Net income rose to $2.5 billion, or 63 cents per share, compared with $500 million, or 12 cents per share, in the prior-year period. Shares climbed more than 6% in after-hours trading.

The company included a $1.3 billion benefit tied to a tariff refund after the U.S. Supreme Court ruled certain Trump-era tariffs illegal. CFO Sherry House said the earnings beat extended beyond the one-time benefit.

Ford expects the tariff refund to help offset about $1 billion in higher commodity costs this year, primarily tied to aluminum sourcing challenges.

Separately, the automaker faces roughly $1 billion in ongoing tariff costs for the year.

The company raised its full-year adjusted EBIT guidance to between $8.5 billion and $10.5 billion, up from $8 billion to $10 billion. It maintained adjusted free cash flow guidance of $5 billion to $6 billion and capital spending guidance of $9.5 billion to $10.5 billion, citing uncertainty around the timing of the tariff refund.

Ford Blue generated $1.9 billion in earnings during the quarter, while Ford Pro delivered $1.7 billion. The Model e electric vehicle unit narrowed losses to $777 million from $849 million a year earlier, as EV sales fell nearly 70%.

Ford said its outlook does not include potential impacts from the Middle East conflicts or a significant U.S. economic downturn.