Ford’s third quarter saw revenue fall short of Wall Street expectations, primarily due to lower vehicle sales volumes and the phase-out of certain models such as the Escape and Corsair. Management pointed to strong performance in trucks, vans, and three-row SUVs, as well as robust results in its software services and parts businesses, which delivered record revenue and helped offset headwinds from discontinued models. CFO Sherry House highlighted that “auto adjacency businesses were significant drivers of the quarter’s strong performance, contributing approximately 10% of the quarter’s revenue at strong margins.”
Is now the time to buy F? Find out in our full research report (it’s free for active Edge members).
Ford (F) Q3 2026 highlights:
- Revenue $49.53 billion vs S&P analysts’ estimates of $50.31 billion (2% year-on-year decline, 1.6% miss)
- Adjusted EPS $0.49 vs S&P analysts’ estimates of $0.40 (21.4% beat)
- Adjusted operating income $2.66 billion vs analyst estimates of $2.38 billion (5.4% margin, 11.8% beat)
- Operating margin 2.9%, in line with the same quarter last year
- Sales volumes fell 9.3% year on year (5.6% in the same quarter last year)
- Market capitalization $49.29 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our top 5 analyst questions from Ford’s Q3 earnings call
- Rajat Gupta (JPMorgan) pressed on how much of Ford’s 2027 cost offset plans are within management’s control. CFO Sherry House explained that revenue optimization, software and parts growth, and structural savings are primary levers, largely already in motion.
- Gautam Narayan (RBC) asked about the risks remaining for the Fathom EV launch, specifically supplier readiness and testing. COO Kumar Galhotra noted that most validation is complete, with supply base ramp-up as the key remaining hurdle.
- Emmanuel Rosner (Wolfe Research) inquired about the path to improving Model e profitability. CFO Sherry House stated that the next major improvement is expected in 2028, following full-year production of new EV platforms and energy storage ramp-up.
- James Picariello (BNP Paribas) sought clarification on F-Series inventory recovery and its financial impact. Management confirmed that supply is running below historical levels, with turn rates and mix supporting the company’s financial targets.
- Andrew Percoco (Morgan Stanley) questioned progress on Ford Energy’s contracted storage capacity. President Dave Carroll said customer interest is high, and more backlog disclosure is planned for next year, with existing contracts and negotiations already covering most of 2028 capacity.
Catalysts in upcoming quarters
In the coming quarters, our analysts will be watching (1) the launch timeline and preorder uptake for the Fathom EV and progress toward affordable EV scale, (2) continued growth in software and parts revenue as a stabilizing force for margins, and (3) execution on Ford Energy’s battery storage commitments and customer contracts. Developments in cost management and global partnerships will also be critical to tracking Ford’s profitability trajectory.
Ford currently trades at $12.18, up from $11.91 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
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