The beat-and-raise quarter with strong cash flow and aggressive buybacks is a clear positive catalyst. Monitor the Q3 earnings call for updates on tariff impacts and the pace of share repurchases, as the remaining $600M authorization provides a floor for EPS growth.
Price Chart
Executive Summary
Lear Corporation reported Q2 2026 adjusted EPS of $4.28, a 7.6% beat vs. the $3.98 consensus, on revenue of $6.21B (in-line with $6.15B estimate). Revenue grew 3% YoY, adjusted EPS rose 23% YoY, and operating cash flow surged 55% to $461M. The company raised its full-year 2026 guidance midpoints across sales, core operating earnings, and free cash flow, signaling confidence in margin expansion and share repurchase benefits despite a flat global production environment.
Key Financial Metrics
Key Facts
- Q2 2026 adjusted EPS of $4.28 beat consensus of $3.98 by 7.6%
- Revenue of $6.21B grew 3% YoY, in line with $6.15B consensus
- Raised full-year 2026 guidance: net sales to $23.54B-$24.01B (from $23.21B-$24.01B), core operating earnings to $1.08B-$1.20B (from $1.03B-$1.20B), free cash flow to $590M-$690M (from $550M-$650M)
- Operating cash flow increased 55% YoY to $461M; free cash flow up 69% to $288M
- Repurchased $100M in shares during Q2; remaining authorization of ~$600M (8% of market cap)
- E-Systems segment margins improved to 5.4% (from 3.5% YoY), driving overall margin expansion
Financial Impact
Raised FY2026 core operating earnings midpoint by $25M to $1.14B; raised free cash flow midpoint by $40M to $640M
Risk Factors
- Global vehicle production expected to decline ~2% on a Lear sales-weighted basis in H2 2026
- Restructuring costs of $175M remain elevated, pressuring near-term GAAP earnings
- Potential tariff changes and supply chain disruptions could impact guidance achievability
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000842162-26-000065 |
| Document: lear-20260731.htm | 0000842162-26-000065 |
| Document: 0000842162-26-000065-index-headers.html | 0000842162-26-000065 |
| Document: 0000842162-26-000065-index.html | 0000842162-26-000065 |
| Document: 0000842162-26-000065.txt | 0000842162-26-000065 |
| 8-K Data (Synthetic) | 0000842162-26-000065 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jul 31, 2026 9w ago | S-3ASR | $130.64 $123.52 | ▼ −5.45% | ▼ −8.44% | $121.38 (−7.09%) |
Jul 31, 2026 9w ago | 8-K | $130.64 $123.52 | ▼ −5.45% | ▼ −8.44% | $121.38 (−7.09%) |
Jun 11, 2026 16w ago | Institutional Cluster | $145.00 $134.76 | ▲ +7.06% | ▲ +8.95% | $121.38 (+16.29%) |
Jun 3, 2026 17w ago | Insider Cluster | $144.81 $130.39 | ▼ −9.96% | ▼ −8.83% | $121.38 (−16.18%) |
Feb 24, 2026 31w ago | Insider Cluster | $133.32 $119.84 | ▼ −10.11% | ▼ −5.13% | $121.38 (−8.96%) |
US Market Status
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