Ford Motor Company reported exceptional first-quarter 2026 results, with earnings per share (EPS) of 66 cents, surpassing expectations by over 230%. Automotive revenues rose 6% year-over-year to $39.82 billion, exceeding estimates of $39.34 billion. Ford’s adjusted EBIT more than tripled to $3.5 billion and the company raised its full-year EBIT guidance to $8.5-$10.5 billion, up from $8-$10 billion.
Despite these positive results, Ford faced challenges, including a $777 million EBIT loss in its Model e division and nearly $2 billion in free cash flow burn. The company is contending with rising commodity costs and has flagged potential disruptions from ongoing geopolitical issues. Ford’s stock currently carries a forward sales multiple of 0.28, lower than its five-year average, while its Value Score is rated A.
In comparison, General Motors benefitted from a $500 million adjustment following a Supreme Court decision related to tariffs, whereas Toyota experienced a 49% decline in quarterly operating profit and trimmed its fiscal 2027 guidance due to similar tariff issues. Overall, Ford’s valuation appears attractive, but investors should weigh the company’s mixed profitability and cash flow outlook before making any new investments.
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