01—Abstract
Summary
Summary of the 10-Q filed April 30, 2026. Cited figures are marked; the original filing is the authoritative source.
Ford Motor Company reported a significant improvement in its financial performance for the first quarter of 2026 compared to the prior year.
Net income attributable to Ford surged to $2.548 billiona, a substantial increase from $471 million in Q1 2025, driven by robust performance across its Ford Blue and Ford Pro segments, along with higher earnings from Ford Credit. Revenue also saw a healthy increase, rising by 6% to $43.253 billion. The company's adjusted EBIT also showed considerable growth, indicating strong operational profitability.
Despite these positive trends, Ford is navigating ongoing challenges, including significant restructuring actions in Europe and adjustments to its electric vehicle (EV) strategy, which resulted in special item charges. The company has also updated its full-year 2026 guidance, projecting a range for adjusted EBIT and maintaining its adjusted free cash flow outlook. Key strategic shifts are evident, particularly in the EV sector, with decisions to rationalize manufacturing capacity and product roadmaps.
The successful resolution of the BlueOval SK joint venture is also a notable event. Looking ahead, Ford aims to capitalize on its strong ICE vehicle performance while continuing to invest selectively in its EV future, focusing on cost competitiveness and operational efficiency to drive long-term value.
02—Key points
Key Highlights
- Net income attributable to Ford Motor Company increased significantly to $2.548 billion in Q1 2026, up from $471 million in Q1 2025.
- Total revenues grew by 6% to $43.253 billion in Q1 2026, compared to $40.659 billion in Q1 2025.
- Company Adjusted EBIT saw a substantial increase, reaching $3.488 billion in Q1 2026, up from $1.019 billion in Q1 2025.
- Ford Blue segment EBIT improved dramatically to $1.942 billion, a significant turnaround from $96 million in Q1 2025, driven by favorable market factors and cost efficiencies.
- Ford Pro segment EBIT also showed strong growth, increasing to $1.685 billion from $1.309 billion in Q1 2025, supported by cost reductions.
- The company has revised its full-year 2026 adjusted EBIT guidance to $8.5 billion - $10.5 billion, and maintained its adjusted free cash flow guidance of $5.0 billion - $6.0 billion.
- Ford announced significant strategic adjustments to its EV strategy, including rationalizing manufacturing capacity and canceling certain EV programs, leading to special item charges.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Ford Motor Co kept $0.06.
- Revenue$43.25B100.0%
- Cost of revenue−$35.31B81.6%
- Gross profit$7.94B18.4%
- Operating costs−$5.61B13.0%
- Operating income$2.33B5.4%
- Interest, other & tax$222.0M0.5%
- Net income$2.55B5.9%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 30, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $43.25B$40.66B | +6.4% |
| Cost of Revenue | $35.31B$35.19B | +0.3% |
| Gross Profit | $7.94B$5.47B | +45.2% |
| SG&A Expenses | $2.81B$2.43B | +15.5% |
| Operating Expenses | $40.92B$40.34B | +1.4% |
| Operating Income | $2.33B$319.00M | +630.1% |
| Net Income | $2.55B$473.00M | +439.3% |
| EPS (Basic) | $0.64$0.12 | +433.3% |
| EPS (Diluted) | $0.63$0.12 | +425.0% |
| Shares Outstanding (Basic) | 3.99B3.97B | +0.6% |
| Shares Outstanding (Diluted) | 4.07B4.01B | +1.5% |
05—Questions
Frequently Asked Questions
What were the main drivers behind Ford's improved financial performance in Q1 2026?
Ford's improved performance in Q1 2026 was primarily driven by higher EBIT from the Ford Blue and Ford Pro segments, benefiting from favorable market conditions, pricing, and cost efficiencies, alongside a strong contribution from the Ford Credit segment. These factors led to a significant increase in both net income and adjusted EBIT compared to the prior year.
How is Ford addressing its electric vehicle (EV) strategy and what are the financial implications?
Ford is rationalizing its EV manufacturing capacity and product roadmap, including canceling certain planned EVs and ending production of the current generation Lightning EV. This strategic shift resulted in $103 million in cash charges in Q1 2026, with potential additional pre-tax charges up to $4 billion. The company is also adjusting its investment in future EV platforms, aiming for improved cost competitiveness. The BlueOval SK joint venture disposition is also a key part of this adjustment, expected to incur around $3.5 billion in pre-tax special charges.
What is Ford's outlook for the full year 2026?
Ford expects full-year 2026 adjusted EBIT to be between $8.5 billion and $10.5 billion, with adjusted free cash flow remaining between $5.0 billion and $6.0 billion. Segmental outlooks include Ford Pro EBIT of $6.5 billion to $7.5 billion, Ford Blue EBIT of $4.5 billion to $5.0 billion, a Ford Model e EBIT loss of $4.0 billion to $4.5 billion, and Ford Credit EBT of about $2.5 billion. The guidance assumes stable U.S. industry pricing and incorporates benefits from the Novelis recovery and expected cost improvements, partially offset by commodity headwinds and tariff impacts.
What is the financial position of Ford Credit and how is it contributing to the company's results?
Ford Credit reported strong earnings before taxes (EBT) of $783 million in Q1 2026, an increase of $203 million year-over-year. This improvement was driven by higher financing margins, favorable derivative market valuation adjustments, and exchange rates, despite higher credit losses. Ford Credit maintains a robust liquidity position with $29.8 billion in net liquidity available for use and continues to access public capital markets effectively, contributing significantly to the consolidated financial performance.
06—Continue