Ford Raises Low End of 2026 Profit Outlook as Ford Credit and Model e Improve

Ford Motor raised the low end of its full-year profit forecast on Wednesday after a third quarter in which adjusted earnings edged higher even as revenue and vehicle shipments slipped.

The automaker now expects 2026 adjusted EBIT of $10.5 billion to $11 billion, up from a prior range of $10 billion to $11 billion, according to the earnings release it filed with an 8-K on Wednesday. Its adjusted free cash flow outlook stayed at $6 billion to $7 billion.

A smaller quarter, a slightly richer margin

Third-quarter revenue fell 2% to $49.5 billion from $50.5 billion a year earlier, as wholesale units dropped 9% to 1.049 million. Net income declined to $2.0 billion, or 50 cents a diluted share, from $2.4 billion, or 60 cents.

Adjusted EBIT rose to $2.7 billion from $2.6 billion, lifting the adjusted EBIT margin to 5.4% from 5.1%. Adjusted EPS increased to 49 cents from 45 cents. Operating cash flow was $5.4 billion, down from $7.4 billion, while adjusted free cash flow improved to $4.7 billion from $4.3 billion.

"Ford delivered a strong quarter as we're entering a defining phase of the company's transformation," CEO Jim Farley said in the release, pointing to the launch of the company's Universal Electric Vehicle platform, Ford Energy and an all-new F-150. He said cost actions and "record growth in software services and parts" are moving Ford toward an 8% adjusted EBIT margin by 2029.

How the segments did

Ford Blue, the gas and hybrid business, earned $1.4 billion in EBIT, down 10%, which the company attributed mainly to lower volume from product discontinuations, the impact of the Middle East conflict within the region and higher commodity costs.

Ford Pro, the commercial unit, generated $1.7 billion in EBIT, down 16%, reflecting higher commodities and temporary launch costs tied to Super Duty production starting at the Oakville Assembly Complex. Lower tariffs and favorable mix partly offset those pressures.

The electric-vehicle unit, Ford Model e, lost $1.1 billion, a 25% improvement from a year earlier, even as its wholesales fell 31% to 34,000 vehicles. Ford Credit's earnings before taxes rose 27% to $803 million.

Outlook and the dividend

The guidance assumes a U.S. seasonally adjusted annual sales rate of 16.5 million units and commodity headwinds approaching $2.5 billion year over year. It does not include potential impacts of a significant escalation of the Middle East conflict or a material U.S. downturn, the company said.

"We are on track to deliver our full-year adjusted EBIT expectations," CFO Sherry House said, adding that Ford is "intensely focused on driving efficiencies" heading into 2027 amid rising inflationary costs.

Ford ended the quarter with $25.3 billion in cash and $46.4 billion in liquidity. It declared a fourth-quarter regular dividend of 15 cents a share, payable Dec. 1 to shareholders of record on Nov. 10.

Sources

1. Ford Motor Company Form 8-K with third-quarter 2026 earnings release (Exhibit 99), filed Oct. 28, 2026 (accession 0000037996-26-000190)

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