Ford Motor (F), a U.S.-based automobile company, has exceeded its expected Q1 results, outpacing Wall Street forecasts and lifting its full-year guidance. Despite strong growth, Ford’s shares dipped by about 3% in premarket trading.
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Ford Reports Stellar Earnings but Stock Price Dips
Ford reported adjusted earnings per share of $0.66 in the first quarter of this year, beating the $0.19 analysts that had targeted. The company made a total revenue of $43.3 billion, signaling a 6% year-over-year increase and slightly beating its $42.96 billion estimate.
These superb results were partly supported by a one-time $1.3 billion gain linked to the International Emergency Economic Powers Act (IEEPA) tariffs, which covered payments made between March 2025 and February 2026. The growth mainly benefited the firm’s internal combustion vehicle division, Ford Blue, and its commercial and services division, Ford Pro, by raising their reported profits.
As a result, Ford’s adjusted Earnings Before Interest and Taxes (EBIT) rose sharply. Moreover, quarterly profits jumped to $3.5 billion, up from $1 billion at the same time last year.
Despite these strong results, the market reaction to the stock was slightly negative. After falling about 3% in premarket trading, the price remains down by about 2.8%, currently sitting at around $11.9.
Business Segments Drive Growth as Ford’s Outlook Improves
According to the company’s report, Ford Pro made an EBIT of $1.7 billion on $14.7 billion revenue, with an 11.4% margin, while Ford Blue generated $1.9 billion in EBIT on $23.9 billion revenue. These figures were driven by strong demand for some car models, including the F-series and Bronco. It was also fueled by the growing sales of the firm’s Explorer and Expedition series.
On the other hand, Ford Model e, the company’s electric vehicle (EV) unit, experienced a loss of about $777 million. This shows that the firm may be facing challenges in growing its EV operations.
Looking ahead, Ford raised its full-year EBIT forecast to $8.5 billion – $10.5 billion, up from the earlier range of $8 billion – $10 billion. This also lifts the midpoint consensus estimate from $8.9 billion to $9.5 billion. However, the company kept its free cash flow outlook at $5 billion – $6 billion and its capital spending plans at $9.5 – $10.5 billion.
The CEO of Ford, Jim Farley, noted that these results show the company is focused on improving its speed, quality, and long-term strength. At the same time, the firm declared a quarterly dividend of $0.15 per share, which will be paid on June 1 to shareholders of record as of May 12, 2026.
Is Ford a Good Stock to Buy Now?
Wall Street analysts rate Ford Motor (F) a Hold, based on TipRanks comparison data. The stock currently trades around $11.90, with an average price target of $13.88 and a 16.5% upside potential. For more information on Ford’s stock performance, rating, and price target, visit the TipRanks Stocks Comparison Center.
