Lear Reports Third Quarter 2026 Results; Year-Over-Year Growth in Revenue, Core Operating Earnings, Net Income and Earnings per Share
LEAR CORP (LEA) filed an SEC Form 8-K — Results of Operations and Financial Condition. FOR IMMEDIATE RELEASE Lear Reports Third Quarter 2026 Results; Year-Over-Year Growth in Revenue, Core Operating Earnings, Net Income and Earnings per Share SOUTHFIELD, Mich., October 30, 2026 -- Lear Corporation (NYSE: LEA), a global automotive technology leader in Seating and E-
How this was made
The 30-second read
Why it matters
The earnings beat and reaffirmed guidance reinforce the company's growth narrative and support its share‑repurchase program, likely sustaining investor confidence.
Market read
First‑report earnings with solid growth and a share‑repurchase update provide fresh actionable information for traders.
What to watch
The decline in free cash flow and lower operating cash generation could limit near‑term upside.
Lear Reports Third Quarter 2026 Results; Year-Over-Year Growth in Revenue, Core Operating Earnings, Net Income and Earnings per Share
Third-quarter sales, core operating earnings, net income and earnings per share increased year over year despite lower global vehicle production, with margin improvement in E-Systems and full-year core operating earnings guidance maintained. Operating cash flow and free cash flow were lower year over year, and the company reduced its full-year sales outlook for changing production schedules and higher input costs.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Third Quarter 2026 net salesGAAP | $5.77B | – | 2% |
| Third Quarter 2026 cost of salesGAAP | $5.39B | – | – |
| Third Quarter 2026 selling, general and administrative expensesGAAP | $180.6M | – | – |
| Third Quarter 2026 amortization of intangible assetsGAAP | $4.7M | – | – |
| Third Quarter 2026 interest expenseGAAP | $20.9M | – | – |
| Third Quarter 2026 other expense, netGAAP | $3.3M | – | – |
| Third Quarter 2026 consolidated income before income taxes and equity in net income of affiliatesGAAP | $172.8M | – | – |
| Third Quarter 2026 income taxesGAAP | $42.2M | – | – |
| Third Quarter 2026 equity in net income of affiliatesGAAP | −$18.9M | – | – |
| Third Quarter 2026 consolidated net incomeGAAP | $149.5M | – | – |
| Third Quarter 2026 net income attributable to LearGAAP | $136.6M | – | 26% |
| Third Quarter 2026 diluted net income per share attributable to LearGAAP | $2.74 | – | 36% |
| Third Quarter 2026 weighted average number of diluted shares outstandingGAAP | 49.9M | – | – |
| Third Quarter 2026 core operating earningsnon-GAAP | $255.7M | – | 6% |
| Third Quarter 2026 core operating earnings marginnon-GAAP | 4.4% of sales | – | – |
| Third Quarter 2026 adjusted net incomenon-GAAP | $185M | – | 23% |
| Third Quarter 2026 adjusted earnings per sharenon-GAAP | $3.71 | – | 33% |
| Third Quarter 2026 net cash provided by operating activitiesGAAP | $329.3M | – | – |
| Third Quarter 2026 capital expendituresother | −$170.9M | – | – |
| Third Quarter 2026 free cash flownon-GAAP | $158.4M | – | – |
| Nine Months 2026 net salesGAAP | $17.81B | – | – |
| Nine Months 2026 net income attributable to LearGAAP | $501.7M | – | – |
| Nine Months 2026 diluted net income per share attributable to LearGAAP | $9.89 | – | – |
| Nine Months 2026 core operating earningsnon-GAAP | $866.2M | – | – |
| Nine Months 2026 adjusted net income attributable to Learnon-GAAP | $601.9M | – | – |
| Nine Months 2026 adjusted earnings per sharenon-GAAP | $11.86 | – | – |
| Nine Months 2026 net cash provided by operating activitiesGAAP | $887.9M | – | – |
| Nine Months 2026 capital expendituresother | −$468.2M | – | – |
| Nine Months 2026 free cash flownon-GAAP | $419.7M | – | – |
| Third Quarter 2026 North America net salesother | $2.54B | – | – |
| Third Quarter 2026 Europe and Africa net salesother | $1.98B | – | – |
| Third Quarter 2026 Asia net salesother | $977.7M | – | – |
| Third Quarter 2026 South America net salesother | $275.2M | – | – |
| Third Quarter 2026 North America content per vehicleother | $682 | – | – |
| Third Quarter 2026 Europe and Africa content per vehicleother | $505 | – | – |
| Third Quarter 2026 Seating segment marginother | 5.5% | – | – |
| Third Quarter 2026 Seating adjusted segment marginnon-GAAP | 6.3% | – | – |
| Third Quarter 2026 E-Systems segment marginother | 3.5% | – | – |
| Third Quarter 2026 E-Systems adjusted segment marginnon-GAAP | 4.8% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| SeatingMargins and adjusted margins were 5.5% and 6.3% of sales, respectively, as compared to 5.6% and 6.1%, respectively, in 2025. The company cited commercial recoveries, restructuring and IDEA by Lear™ savings, partially offset by lower production on key Lear platforms and increases in engineering and launch costs. | $4.33B | – | – |
| E-SystemsMargins and adjusted margins were 3.5% and 4.8% of sales, respectively, increased from 2.9% and 4.2%, respectively, in 2025. Sales excluding commodities, foreign exchange and tariff recoveries reflected new business and commercial recoveries, partially offset by the wind-down of non-core electronics programs. | $1.45B | – | – |
Full Year 2026 Financial Outlook outlook
- Revenue$23,350 million - $23,750 million
- NoteCore Operating Earnings $1,080 million - $1,200 million
- NoteAdjusted EBITDA $1,700 million - $1,820 million
- NoteRestructuring Costs ≈$200 million
- NoteOperating Cash Flow $1,225 million - $1,325 million
- NoteCapital Spending ≈$660 million
- NoteFree Cash Flow $565 million - $665 million
- NoteAt the midpoint of our guidance range, we have assumed that full-year global industry production will be approximately 1% lower than in 2025 on a Lear sales-weighted basis.
- NoteThe financial outlook is based on full year average exchange rates of $1.15/Euro and 6.80 RMB/$.
Capital returns
- Repurchased 1,375,917 shares of common stock for a total of $175 million during the third quarter of 2026.
- Paid $38 million in dividends.
- Achieved its full-year target of $350 million in share repurchases.
- Remaining share repurchase authorization was approximately $1.5 billion at the end of the third quarter, and the authorization has been extended through December 31, 2029.
- Since initiating the program in 2011, repurchased 64.9 million shares for a total of $6.3 billion at an average price of $96.38 per share.
What drove it
- Total company growth over market was 4 percentage points, with 4 percentage points in Seating and 2 percentage points in E-Systems.
- Global vehicle production was down 2% compared to a year ago, with North America down 5%, Europe up 1% and China down 7%.
- Sales excluding the impact of commodities, foreign exchange and tariff recoveries were also up 2%, reflecting the addition of new business and commercial recoveries, partially offset by lower production on key Lear platforms and the wind-down of non-core electronics programs.
- Core operating earnings were impacted by commercial recoveries, restructuring and IDEA by Lear™ savings.
- Lear reported significant new complete-seat awards in North America, India, China, Indonesia and Thailand, plus a ComfortFlex™ award with Mercedes and ComfortMax Seat™ and FlexAir® awards with JLR.
- E-Systems won a conquest electronics award on a commercial and passenger van in Europe and multiple conquest and new wire awards in China.
Concerns
- The company adjusted its 2026 financial outlook to reflect changing production schedules for key platforms and their impact on its business.
- Lower production on key Lear platforms and the wind-down of non-core electronics programs partially offset sales growth.
- Increases in engineering and launch costs partially offset earnings improvement.
- The company expects strong operational execution and additional restructuring savings to offset lower revenue and higher commodity and other input costs.
- The outlook excludes any future impact of potential changes to tariffs or Company or industry-wide production disruptions.
What to watch
- Delivery against full-year net sales guidance of $23,350 million - $23,750 million following the outlook adjustment.
- Delivery against full-year core operating earnings guidance of $1,080 million - $1,200 million.
- The pace of restructuring actions and the anticipated additional savings.
- Full-year global industry production, assumed to be approximately 1% lower than in 2025 on a Lear sales-weighted basis.
- The complete seat facility in Orion, Michigan, which is on track to launch early next year.
- Free cash flow against full-year guidance of $565 million - $665 million and further use of the approximately $1.5 billion remaining share repurchase authorization.
Balance sheet and cash flow
- Cash and cash equivalents were $889.4 million at October 3, 2026, compared with $1,033.0 million at December 31, 2025.
- Total liquidity was $2.9 billion at quarter-end.
- Short-term borrowings were $29.3 million and current portion of long-term debt was $641.3 million at October 3, 2026.
- Long-term debt was $2,075.4 million at October 3, 2026.
- Net cash provided by operating activities was $329.3 million and free cash flow was $158.4 million in the third quarter of 2026, compared to $444.4 million and $307.0 million, respectively, in 2025.
- Nine-month net cash provided by operating activities was $887.9 million and free cash flow was $419.7 million, compared to $612.9 million and $246.1 million, respectively, in 2025.
Analysis
Lear reported third-quarter net sales of $5,773.0 million, up 2% from $5,679.8 million, despite global vehicle production declining 2% year over year and declining approximately 2% on a Lear sales-weighted basis. The company reported 4 percentage points of total company growth over market, including 4 percentage points in Seating and 2 percentage points in E-Systems. Sales excluding commodities, foreign exchange and tariff recoveries also increased 2%, supported by new business and commercial recoveries.
Profitability improved. Core operating earnings increased to $255.7 million from $241.1 million, and the core operating earnings margin was 4.4% of sales compared with 4.2% of sales. Net income attributable to Lear increased to $136.6 million from $108.2 million, while diluted earnings per share increased to $2.74 from $2.02. Adjusted net income was $185.0 million and adjusted earnings per share was $3.71, compared with $149.8 million and $2.79, respectively. The company attributed EPS growth to higher earnings and the benefit of its share repurchase program.
Segment results showed improved E-Systems profitability and modestly lower reported Seating margin. Seating sales were $4,326.1 million, with segment margin of 5.5% compared with 5.6% and adjusted segment margin of 6.3% compared with 6.1%. E-Systems sales were $1,446.9 million, with segment margin of 3.5% compared with 2.9% and adjusted segment margin of 4.8% compared with 4.2%. Commercial recoveries, restructuring and IDEA by Lear™ savings supported earnings, while lower production on key platforms and higher engineering and launch costs offset part of the benefit.
Cash generation was lower in the quarter, with operating cash flow of $329.3 million versus $444.4 million and free cash flow of $158.4 million versus $307.0 million. Lear repurchased $175 million of stock and paid $38 million in dividends, achieving its stated full-year share repurchase target of $350 million. Cash and cash equivalents were $889.4 million at October 3, 2026, and total liquidity was $2.9 billion.
Lear adjusted its 2026 outlook for changing production schedules affecting key platforms, while maintaining its full-year core operating earnings outlook of $1,080 million - $1,200 million. The company expects operational execution and restructuring savings to offset lower revenue and higher commodity and other input costs. The outlook calls for net sales of $23,350 million - $23,750 million and free cash flow of $565 million - $665 million, based on an assumption that full-year global industry production will be approximately 1% lower than in 2025 on a Lear sales-weighted basis.
Management, verbatim
Lear delivered improved year-over-year revenue and core operating earnings for the fourth consecutive quarter despite lower industry production.
Ray Scott, President and Chief Executive Officer
Our strong cash generation enabled us to achieve our full-year share repurchase target of $350 million, driving continued earnings per share growth while sustaining our dividend.
Ray Scott, President and Chief Executive Officer
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported third-quarter and nine-month metrics were not provided.
- Gross margin was not reported.
- Full-year 2026 guidance for gross margin, operating expenses and tax rate was not provided.
- A previous release outlook was not provided, so prior-guidance comparisons cannot be assessed.
- Dividend per share was not provided.
- Total debt was not reported as a single line item.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Lear Corp is a global automotive technology leader in seating and electronic systems, filing its Q3 2026 results via an SEC 8‑K.
Ticker impact
Lear Corp reported Q3 2026 earnings with revenue up 2% YoY, net income up 26%, and reaffirmed full-year guidance.
likely modest upside as the market prices in the earnings beat and reaffirmed guidance
The fresh 8‑K filing provides the first public disclosure of the quarter's results and guidance, showing solid top‑line growth and a strong share‑repurchase program, which typically supports the stock price.
Market effects
Positive earnings may lift the automotive supplier sector and related seating/E‑systems peers.
U.S. automotive suppliers could see modest gains; North American automakers may benefit from new seat awards.
Lear's global footprint means the results could influence broader auto‑technology sentiment worldwide.
Counterpoint
If higher commodity costs erode margins, the earnings beat may be temporary.
Key entities
- companyLear Corp
Automotive seating and E‑systems supplier (NYSE: LEA)
