BMW misses Q2 revenue, EBIT estimates on China downturn, intensified competition

Bayerische Motoren Werke Aktiengesellschaft

30/07/2026 06:47

Overview
German luxury automaker's Q2 revenue fell 7.9% yr/yr, missing analyst expectations
Q2 EBIT declined 38.7% and missed analyst expectations
Company agreed with Works Council on workforce restructuring amid China market downturn and competition

Outlook
BMW confirms 2026 guidance, expects slight decline in Automotive Segment deliveries
Company projects full-year Automotive Segment free cash flow of over €2.5 bln
BMW expects intensified competition and regulatory challenges to impact business model

Result Drivers
CHINA MARKET DOWNTURN - Co said sharply negative market development in China and intensified competition in Asia-Pacific weighed on Q2 performance
COST REDUCTION - Co said cost reductions and efficiency measures partially offset negative effects from lower sales and headwinds
EUROPEAN EV DEMAND - Co said BEV deliveries in Europe rose by more than one-third in Q2, driven by new model launches

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
EUR 31.26 bln
EUR 32.33 bln (4 Analysts)
Q2 EPS
 
EUR 2.05
 
Q2 Net Income
 
EUR 1.20 bln
 
Q2 EBIT
Miss
EUR 1.63 bln
EUR 1.89 bln (4 Analysts)
Q2 Pretax Profit
 
EUR 1.70 bln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 11 "strong buy" or "buy", 10 "hold" and 5 "sell" or "strong sell"
The average consensus recommendation for the auto & truck manufacturers peer group is "buy."
Wall Street's median 12-month price target for Bayerische Motoren Werke AG is €75.00, about 24.4% above its July 29 closing price of €60.30
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago

Reuters Recommended Reads
July 29 - BMW to cut several thousand jobs in latest blow to German auto sector
July 28 - Cost cuts help Mercedes stabilise profit but China woes loom
July 29 - Lamborghini's operating profit falls as geopolitical turmoil shakes luxury car sector

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)