Ford Motor beat third-quarter adjusted earnings estimates but slightly missed revenue expectations. The company reported adjusted free cash flow of $4.7 billion, roughly $2 billion higher than analyst anticipation according to StreetAccount.
Ford narrowed its 2026 guidance for adjusted earnings before interest and taxes to between $10.5 billion and $11 billion, up from a prior range of $10 billion to $11 billion. The company maintained its adjusted free cash flow guidance for this year at between $6 billion and $7 billion.
CFO Sherry House said 2027 earnings will be roughly in line with this year's results. She cited a $1.3 billion tariff refund in the first quarter largely offset by costs from alternative aluminum sourcing that the company does not expect to repeat. Production of F-Series Super Duty trucks in Canada in 2027 will compensate for lost F-150 production as the company retools those factories for new models, House added.
Third-quarter revenue fell roughly 2% year-over-year to $49.5 billion. Net income declined $400 million to $2 billion, while adjusted EBIT rose slightly to $2.7 billion. The company reported a 5.4% adjusted EBIT margin in the quarter.
CEO Jim Farley called 2027 a "foundational year" on the path to an 8% adjusted EBIT margin target by 2029. Ford Blue is expected to generate $5.5 billion in pre-tax earnings for 2026, Ford Pro about $7 billion in EBIT, and Ford Model e losses of about $4 billion.
Ford's third-quarter results across all three main segments (Blue, Pro, and Model e) underperformed Wall Street expectations on revenue.
Investors should monitor Ford (F) guidance updates and 2027 earnings trajectory as the company navigates new model launches, EV expansion, and structural cost savings.