BMW holds 2026 outlook despite Q1 profit slump, shares jump on margin beat
BMW beat profit expectations and lifted shares nearly 5% after a stronger-than-forecast automotive margin offset tariff and China pressures.
- BMW maintained its 2026 financial guidance on Wednesday despite first-quarter pretax profit tumbling 25% to €2.3 billion, sending shares up nearly 5% as investors reacted to the earnings beat.
- Group revenue fell 8.1% to €31 billion in the first quarter, as tariffs and intense Chinese competition squeezed margins, highlighting the challenging start to the year for The German automaker.
- BMW's core automotive EBIT margin stood at 5.0% in the first quarter, outperforming analysts' forecast of 4.7% and signaling underlying operational strength amid global market volatility.
- Unlike Volkswagen and Mercedes, the company avoided job cuts by focusing on factory efficiencies and rolling out the Neue Klasse platform, even as tariffs reduced car margins by 1.25 percentage points.
- CEO Oliver Zipse downplayed President Donald Trump's threat to raise auto tariffs to 25% from 15%, while the company assumes the Middle East conflict 'will not be enduring' in 2026.
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24 Articles
The net profit of BMW fell 23.1%, to EUR 1,672 million, in the first quarter in homologous terms, penalised by the US customs duties on European vehicles, and by the provisions for risks. In a statement, the German car manufacturer indicates that the customs duties reduced the operating profit margin by 1.25 percentage points in the first quarter, a value higher than that of the previous year, when the European Union (EU) applied customs duties …
Currency devaluation and commodity prices also hurt results, the company added.
BMW has to accept a further decline in profits. Munich's car manufacturer has problems primarily with the USA and China – in Europe, on the other hand, business is running very well.
In detail Bmw has announced that the profits before taxes have been attested to 2,3 billion euros in the first trimester while the turnover of the group is diminished of the ...8,1%
The Munich-based car manufacturer BMW is reducing profit and sales. In the first quarter, the Group earned almost 25 percent less than in the same period of the previous year.
Sueddeutsche Zeitung
In the first quarter of the year, the Munich automaker earns about 23 percent less than in the previous year.
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