TLDR
- Volkswagen Q2 operating profit fell nearly 10% to €3.5 billion, missing estimates of €4.3 billion
- The company cut its 2026 revenue forecast from up to 3% growth to a decline of up to 3%
- Vehicle sales dropped 8.4% in H1 2026, driven by a 31.6% collapse in China
- VW confirmed plans to cut up to 100,000 jobs, double the previously stated figure
- The stock slipped 3% Friday and is down nearly 30% year-to-date
Volkswagen stock fell 3% on Friday after the German automaker reported weaker-than-expected second-quarter profits and slashed its 2026 revenue outlook. The stock is now down nearly 30% year-to-date.
Q2 operating profit came in at €3.5 billion ($3.98 billion), down nearly 10% from a year ago. That missed analyst expectations of €4.3 billion, according to LSEG data.
The company also reversed its full-year revenue guidance. It now expects sales revenue to decline up to 3% in 2026, compared to a previous forecast of up to 3% growth.
VW IS RESETTING FOR A LOWER-VOLUME FUTURE
Volkswagen CUT its 2026 revenue outlook to -3% to 0%, from 0% to +3%, after Q2 deliveries in China fell roughly 37%. H1 operating profit declined 11.6% to €5.9 billion, leaving the operating margin at 3.8%.
CFO Arno Antlitz says the… pic.twitter.com/6TbxtqF12Q
— Wall St Engine (@wallstengine) July 24, 2026
First-half operating profit fell 11.6% to €5.93 billion. Operating return on sales slipped to 3.8%, down from 4.2% a year earlier.
Vehicle sales were 3.997 million units in H1, down 8.4% from 4.363 million a year prior. China was the biggest drag, with volumes falling 31.6%.
CFO Arno Antlitz didn’t sugarcoat it. “A margin of roughly 4% is clearly a wake-up call that we have to do a second step of restructuring,” he told CNBC on Friday.
Jobs and Plant Closures
The results come as VW confirmed it is looking to cut up to 100,000 jobs — twice the number previously reported. CEO Oliver Blume had told staff in a memo earlier this month that group costs were running 20% higher than comparable businesses.
Four German plants — Hanover, Zwickau, Emden, and the Audi facility in Neckarsulm — remain under threat. Blume said the company has been unable to confirm alternative uses for those factories.
VW had reached a deal with unions in late 2024 to avoid closures and rule out compulsory redundancies until 2030. That deal is now under pressure.
Antlitz said plant closures are not the goal. “We want to reduce our cost structure and increase productivity. And if there are better options, we will obviously look into that.”
China Weakness and Tariff Pressure
China continues to be a major headache. The CFO noted the Chinese total market is down 20% and Chinese automakers are ramping up exports into Europe, increasing competitive pressure.
Tariff costs are also biting. VW ended U.S. production of its ID.4 electric SUV in April, citing the challenging environment for EVs in America.
The company’s software unit CARIAD posted revenue of €815 million in H1, up €250 million year-on-year. Its operating loss improved to €855 million from €1.17 billion a year earlier.
Net liquidity in the Automotive Division stood at €32.75 billion at the end of H1. Net cash flow improved to €3.17 billion, up from a negative €1.4 billion a year earlier.
VW’s 2026 forecast assumes the current tariff situation stays unchanged. It does not account for a potential Middle East escalation or effects from its Group Target Picture 2030 strategy.
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