Ford beats Q1 earnings, raises forecast with $1.3B in tariff relief

Ford (NYSE: F) reported Q1 2026 earnings after the market closed, beating top and bottom lines due to a $1.3 billion one-time tariff refund and improvements with the Novelis plant recovery.

After reporting that first-quarter vehicle sales in the US fell 8.8% to 457,315 units, Ford said strong demand in the year prior, before the Trump Administration’s tariffs took effect, made the comparison difficult.

While demand remains high, according to Ford, F-series truck sales dropped 16% in Q1 with production limited due to last year’s Novelis plant fire.

Ford’s electric vehicle sales also crashed 69% in the first quarter after the company discontinued production of the all-electric F-150 Lightning. Sales of the electric pickup fell 71% in Q1, to just over 2,000 units. The Mustang Mach-E didn’t fare much better with just 4,600 models sold in the first quarter, 60% fewer than in the year prior.

Advertisement – scroll for more content

In December, Ford said it expects to book $19.5 billion in charges from canceled EVs, dissolving its battery joint venture with SK On, and other major restructuring plans. The majority of it came in the fourth quarter of 2025.

Ford is now betting on smaller, more affordable EVs based on its Universal EV Platform, starting with a midsize pickup in 2027 that will start at around $30,000.

Investors will be looking for updates on Ford’s electric vehicle plans, the Novelis plant fires, and the impacts of tariffs.

According to Estimize, Wall Street expects Ford to post Q1 2026 revenue of $42.66 billion with an adjusted earnings per share (EPS) of $0.18.

Ford Q1 2026 earnings and financial breakdown

Ford reported first-quarter revenue of $43.4 billion, up 6% from the prior year, with an adjusted EPS of $0.66.

Excluding Ford Credit, automotive revenue totaled $39.8 billion, while the company posted an adjusted EBIT of $3.5 billion.

Ford Blue and Pro posted an EBIT of $1.9 billion and $1.7 billion, respectively. Ford’s first-quarter net income was $2.5 billion, up from $500 mllion in Q1 2025.

While Ford’s electric vehicle business, Model e, lost another $777 million, it was an improvement from the $849 million in Q1 2025.

Volume was also up due to higher European wholesales. Ford expects Model e to lose around $4 billion to $4.5 billion in 2026 as it invests in its next-gen models.

Ford raised its full-year adjusted EBIT guidance to $8.5 billion to $10.5 billion, up from $8 billion to $10 billion, thanks to a one-time $1.3 billion IEEPA tariff benefit and improvements from the Novelis recovery.

Crosstown rival GM raised its full-year 2026 earnings expectations on Tuesday after winning roughly $500 million from the US Supreme Court in a case regarding tariffs under the International Emergency Economic Powers Act (IEEPA) that were illegal. GM now expects adjusted earnings of $13.5 billion to $15.5 billion in 2026, up from the previous $13 billion to $15 billion.

Check back for more updates from Ford’s first quarter earnings call. We will post updates below.