Ford Earnings Miss Expectations Amid Market Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 05 2026
0mins
Should l Buy F?
Source: seekingalpha
Ford Motor Co's stock rose by 3.03% and reached a 20-day high, reflecting some investor optimism despite broader market conditions.
The company reported its fourth-quarter adjusted earnings per share at 13 cents, significantly below Wall Street's expectation of 19 cents, primarily due to unexpected tariff costs of $900 million and a fire at an aluminum plant. This disappointing earnings report highlights the financial strain Ford is currently facing, which is compounded by the competitive pressures from the global automotive market. Investors are keenly awaiting updates on Ford's business plans and its forecast for 2026, particularly regarding production updates for the F-Series pickup trucks.
The implications of this earnings miss could lead to increased scrutiny from investors and analysts, as the company navigates through operational challenges and a competitive landscape that is increasingly dominated by electric vehicle manufacturers.
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Analyst Views on F
Wall Street analysts forecast F stock price to fall
14 Analyst Rating
3 Buy
10 Hold
1 Sell
Hold
Current: 14.130
Low
11.00
Averages
13.65
High
16.00
Current: 14.130
Low
11.00
Averages
13.65
High
16.00
About F
Ford Motor Company is an automobile company. The Company develops and delivers Ford trucks, sport utility vehicles, commercial vans and cars, and Lincoln luxury vehicles, along with connected services. The Company’s segments include Ford Blue, Ford Model e, Ford Pro, and Ford Credit. The Ford Blue segment primarily includes the sale of Ford and Lincoln internal combustion engine (ICE) and hybrid vehicles, service parts, accessories, and digital services for retail customers. The Ford Model e segment primarily includes the sale of its electric vehicles, service parts, accessories, and digital services for retail customers. The Ford Pro segment primarily includes the sale of Ford and Lincoln vehicles, service parts, accessories, and services for commercial, government, and rental customers. The Ford Credit segment consists of the Ford Credit business on a consolidated basis, which is primarily vehicle-related financing and leasing activities. Its vehicle brands are Ford and Lincoln.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Manufacturing Efficiency Gains: The new platform reduces total parts by 20% and cuts 40% of process workstations on the factory floor, allowing Ford to lower production costs through streamlined manufacturing processes, thereby enhancing overall profitability.
- Battery Cost Control: Ford opts for lithium iron phosphate (LFP) batteries, which are cheaper and safer, as batteries account for over 40% of an EV's total cost; reducing battery costs is crucial for Ford to achieve profitability in its electric vehicle lineup.
- Market Risks and Opportunities: Although EV penetration in the U.S. is only 6%-8%, Ford remains optimistic about the midsize electric pickup's market potential, believing it meets consumer demand for affordability and utility, potentially filling a market gap and driving sales growth.
See More
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- Fuel Economy Calculation: The rescinded 'fuel content factor' allowed automakers to calculate fleetwide fuel economy by assigning higher efficiency figures to EVs, thus lowering overall fuel consumption metrics, and its removal will diminish the competitive edge of EVs.
- Court Ruling Basis: The DOE cited a September appeals court decision as the basis for this policy reversal, indicating that the legal environment is increasingly influencing EV policies, which may lead to more adjustments in similar regulations in the future.
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- Shareholder Return Comparison: While Ford returns most value to shareholders through dividends, General Motors has initiated a $10 billion stock buyback in 2023, with an additional $6 billion authorized for both 2024 and 2025, reflecting differing capital allocation strategies between the two automakers.
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