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FinanceVolkswagen Q2 profit misses estimates, cuts 2026 revenue forecast
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German auto giant Volkswagen reported weaker-than-expected second-quarter profit of 3.5 billion euros, down nearly 10% year-on-year and missing analyst expectations of 4.3 billion euros. The company revised its 2026 sales revenue forecast to a range of -3% to 0% from the previous 0% to 3%, citing the discontinuation of its top electric vehicle (ID.4) in the U.S. and negative mix effects. The results follow news that Volkswagen is considering cutting up to 100,000 jobs, double previous estimates, to counter a profit slump driven by billions in tariff costs and competition from Chinese car brands. CEO Oliver Blume stated in a memo that group costs are 20% higher than comparable businesses. The company also faces uncertainty over four German factories previously threatened with closure. Shares fell 3.3% in premarket trading and are down nearly 30% year-to-date.
Source report
A German national flag on a barge near the Volkswagen AG factory in Wolfsburg, Germany, on Tuesday, March 10, 2026. Source: Bloomberg | Bloomberg | Getty Images
German auto giant Volkswagen on Friday reported weaker-than-expected second-quarter profit, citing the discontinuation of its top electric vehicle in the U.S. and negative mix effects, as it revised down its sales forecast for 2026.
Key Financial Results
- Operating profit: €3.5 billion ($3.98 billion) for the April–June period
- Year-over-year change: Down nearly 10%
- Market expectations: Missed the LSEG-compiled consensus of €4.3 billion
Revised 2026 Outlook
Volkswagen now expects sales revenue in 2026 to develop within a range of -3% to 0% compared with the previous year, down from its previous forecast of 0% to 3%.
Cost-Cutting and Job Reductions
The results come shortly after the company confirmed it is looking to cut up to 100,000 jobs—twice as many as previously stated—as it seeks to counter a profit slump amid billions of euros in tariff costs and intensifying competition from Chinese car brands.
In a widely reported memo to staff earlier this month, CEO Oliver Blume said that the group's costs were 20% higher than comparable businesses, and the company would therefore need to reduce costs even further.
Blume reportedly said the company had been unable to confirm alternative uses for four German factories previously threatened with closure:
- Hanover
- Zwickau
- Emden
- Audi facility in Neckarsulm
U.S. Market Challenges
Volkswagen said in April that it would end production of the ID.4 electric sports utility vehicle at its Tennessee plant amid a challenging U.S. environment for EVs.
Labor Agreements
The automaker had agreed a deal with unions in late 2024 to avoid factory closures in Germany and rule out compulsory redundancies until the end of 2030.
Stock Performance
- Year-to-date: Shares are down nearly 30%
- Pre-market trading: Down 3.3% ahead of the open
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US Top News and AnalysisWestern
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Volkswagen expects full-year revenue squeeze after quarterly profit slump