TLDR
- Q2 net income fell to $80M ($0.75/share) from $108M ($0.88/share) a year ago
- Revenue dropped 6% to $1.23B; gross margin slipped to 27.5% from 28.6%
- HOG shipped 39,200 motorcycles, up 9.4% YoY but short of Wall Street’s 40,810 estimate
- Full-year retail sales forecast raised to 133,500–138,500 units from 130,000–135,000
- HDMC operating income outlook improved to $10M–$50M, up from a prior range of -$40M to $10M
Harley-Davidson (HOG) stock slipped about 1% in premarket trading Thursday after the company posted weaker Q2 earnings, though the results still beat some analyst expectations.
Q2 net income came in at $80 million, or $0.75 per share, down from $108 million, or $0.88 per share, in the same period last year. Revenue fell 6% to $1.23 billion year-over-year.
Earnings per share were $0.11 ahead of analyst expectations, which offered some cushion despite the overall decline.
$HOG Q2 2026 earnings: Core Business Ignites, Sparking Guidance Raise
Harley-Davidson delivered a solid Q2 defined by a 6% revenue growth in its core HDMC segment, snapping a streak of top-line declines. The 6% drop in consolidated revenue is a red herring—driven entirely by the… pic.twitter.com/3hY38V5yDy
— Finsee (@Finsee_main) July 23, 2026
Gross margin narrowed to 27.5% from 28.6% a year ago, hurt by higher raw material costs, an unfavorable product mix, and foreign exchange headwinds.
The company shipped 39,200 motorcycles during the quarter — a 9.4% jump year-over-year, but still below Wall Street’s estimate of 40,810 units.
Worldwide sales edged up 1%. North America grew 3% and Latin America added 4%, but EMEA slipped 9% and Asia Pacific was flat.
Operating income fell 32%, driven largely by weakness in its financial services division, HDFS, which is transitioning to a capital-light model.
“Back to the Bricks” Taking Shape
CEO Artie Starrs has been steering the company away from premium touring models toward lighter, more affordable bikes. The entry price point now starts around $10,000.
The “Back to the Bricks” plan aims to bring back iconic Harley models and attract younger riders with smaller-engine options — a deliberate pivot from the brand’s traditional customer base.
LiveWire Narrows Losses
The electric division, LiveWire, trimmed its operating loss to $18 million from $19 million in the same quarter last year — a small but steady improvement.
Full-year LiveWire assumptions call for an operating loss of $70M–$80M, with capital investment of $175M–$200M.
Despite the quarterly miss, Harley raised its full-year retail sales forecast to 133,500–138,500 units, up from the prior range of 130,000–135,000.
HDMC operating income guidance was raised to $10M–$50M, a notable swing from the prior outlook of -$40M to $10M profit.
HDFS operating income guidance was also lifted, now seen at $55M–$65M versus the prior range of $45M–$60M.
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