Lear Q1 adjusted EPS beats expectations

Lear

01/05/2026 11:44

Overview

U.S. auto technology supplier's Q1 revenue up 5%, slight miss versus analyst expectations

Adjusted EPS for Q1 rose 24% and beat analyst expectations

Company repurchased $75 mln in shares during the quarter

Outlook

Lear maintains 2026 net sales guidance at $23.21 bln to $24.01 bln

Company expects 2026 core operating earnings of $1.03 bln to $1.2 bln

Lear assumes 2026 global industry production about 2% lower than 2025 on sales-weighted basis

Result Drivers

HIGHER PRODUCTION & NEW BUSINESS - Increased production on key Lear platforms and new business wins contributed to revenue and earnings growth

MARGIN IMPROVEMENT - Margins improved in both Seating and E-Systems segments

SHARE REPURCHASES & TAX RATE - Adjusted EPS growth reflected higher earnings, share repurchases, and a lower effective tax rate

Company press release: ID:nPn6n0k6Ka

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Slight Miss*
$5.82 bln
$5.84 bln (10 Analysts)
Q1 Adjusted EPS
Beat
$3.87
$3.52 (11 Analysts)
Q1 EPS
$3.34
Q1 Adjusted Net Income
Beat
$199.5 mln
$181.94 mln (6 Analysts)
Q1 Net Income attributable
$172.3 mln
Q1 Core Operating Earnings
$297 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 11 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"

Wall Street's median 12-month price target for Lear Corp is $136.00, about 7% above its April 30 closing price of $127.13

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

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.)