Lear Adjusted EPS Jumps 33% as Buybacks Hit $350 Million Target

Published October 30, 2026 at 9:20 AM EDT

Lear's third-quarter earnings per share jumped 36% as higher profit and an aggressive buyback program shrank its share count, the auto seating and electrical systems supplier said Friday.

Revenue rose 2% to $5.8 billion from $5.7 billion a year earlier, according to the earnings release filed with an 8-K. Net income increased 26% to $137 million, or $2.74 a share, from $108 million, or $2.02. Adjusted net income rose 23% to $185 million, and adjusted EPS climbed 33% to $3.71 from $2.79.

Core operating earnings increased 6% to $256 million from $241 million.

Outgrowing the auto market

Lear said its sales grew 4 percentage points faster than vehicle production in its markets, with Seating also beating the market by 4 points and E-Systems by 2 points. Both segments improved operating performance.

The company said it won significant new complete-seat awards, including a program with a North American automaker and its largest complete-seat award in India.

Cash and buybacks

Operating cash flow was $329 million and free cash flow was $158 million, down from $444 million and $307 million a year earlier.

Lear repurchased $175 million of stock in the quarter, reaching its full-year buyback target of $350 million, and paid $38 million in dividends. It ended the quarter with $889 million in cash and $2.9 billion of total liquidity.

Why it matters

Auto suppliers have faced uneven vehicle production and tariff costs. Lear's ability to grow faster than the market while lifting earnings, along with buybacks that magnified per-share gains, is what investors will weigh against softer cash generation this quarter.

By the numbers

$5.8 billion: third-quarter revenue, up 2%
$3.71: adjusted EPS, up 33%
$256 million: core operating earnings, up 6%
$158 million: free cash flow, down from $307 million
$350 million: full-year buyback target, already reached
$2.9 billion: total liquidity

Sources

Lear Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 30, 2026 (accession 0000842162-26-000090)

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