The EPS beat and gross margin guidance raise are positive, but the revenue miss and 1% YoY decline signal top-line headwinds from weak global auto production. Monitor Q3 auto production trends and tariff developments; the stock may trade on margin sustainability vs revenue trajectory in the near term.
Price Chart
Executive Summary
Gentex reported Q2 2026 adjusted EPS of $0.58, a 15.8% beat vs $0.50 consensus, but revenue of $651.3M missed the $669.6M estimate and declined 1% YoY. Gross margin surged 280 bps to 37.0% driven by $18M in IEEPA tariff reimbursements and favorable mix, while the company raised its full-year gross margin guidance to 34.5%-35.5%. The revenue miss and ongoing automotive weakness in Europe/China temper the strong earnings beat, making the overall read mixed for a supplier with declining top-line fundamentals.
Key Financial Metrics
Key Facts
- Q2 2026 adjusted EPS $0.58 beat consensus $0.50 by 15.8%
- Revenue $651.3M missed consensus $669.6M and declined 1% YoY from $657.9M
- Gross margin 37.0% expanded 280 bps YoY, aided by $18M IEEPA tariff reimbursements
- Automotive revenue fell 3% QoQ; China revenue declined ~20% QoQ
- Non-automotive revenue was 14% of total; Premium Audio grew 16% QoQ to $51.7M
- Full-year 2026 gross margin guidance raised to 34.5%-35.5% from 34%-35%
- Operating expenses guidance lowered to $405-$415M from $410-$420M
- Repurchased 2.7M shares for $66.0M during the quarter
- Global light vehicle production expected to decline ~3% in 2026 vs 2025
Financial Impact
EPS beat by $0.08 (15.8%) on $0.58 vs $0.50 consensus; revenue miss of $18.3M (2.7%) vs consensus; gross margin expansion of 280 bps YoY to 37.0%
Risk Factors
- Global light vehicle production expected to decline ~3% in 2026, pressuring automotive revenue
- China revenue down ~20% QoQ; tariff uncertainty continues to impact the business
- Revenue miss vs consensus suggests demand weakness beyond what margin expansion can offset
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3332811 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jul 24, 2026 10w ago | 8-K | $22.90 $23.64 | ▲ +3.23% | ▼ −0.39% | $22.08 (−3.58%) |
Jul 24, 2026 10w ago | Press Release | $22.90 $23.64 | ▲ +3.23% | ▼ −0.39% | $22.08 (−3.58%) |
Jun 30, 2026 13w ago | Press Release | $25.27 $22.92 | ▲ +9.30% | ▲ +8.27% | $22.08 (+12.62%) |
May 15, 2026 20w ago | Insider Cluster | $22.68 $25.73 | ▲ +13.45% | ▲ +11.87% | $22.08 (−2.65%) |
May 15, 2026 20w ago | Insider Cluster | $22.68 $25.73 | ▲ +13.45% | ▲ +11.87% | $22.08 (−2.65%) |
May 15, 2026 20w ago | Insider Cluster | $22.68 $25.73 | ▲ +13.45% | ▲ +11.87% | $22.08 (−2.65%) |
May 15, 2026 20w ago | Insider Cluster | $22.68 $25.73 | ▲ +13.45% | ▲ +11.87% | $22.08 (−2.65%) |
May 15, 2026 20w ago | Insider Cluster | $22.68 $25.73 | ▲ +13.45% | ▲ +11.87% | $22.08 (−2.65%) |
Apr 30, 2026 22w ago | Insider Cluster | $23.11 $24.08 | ▲ +4.20% | ▼ −0.77% | $22.08 (−4.46%) |
Apr 24, 2026 23w ago | 8-K | $23.88 $23.40 | ▼ −2.01% | ▼ −6.04% | $22.08 (−7.54%) |
US Market Status
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