Lear (NYSE:LEA) Releases Earnings Results, Beats Estimates By $0.30 EPS

Lear (NYSE:LEA) issued its quarterly earnings results on Friday. The auto parts company reported $4.28 EPS for the quarter, topping analysts’ consensus estimates of $3.98 by $0.30, FiscalAI reports. Lear had a net margin of 2.25% and a return on equity of 13.69%. The company had revenue of $6.21 billion for the quarter, compared to analyst estimates of $6.15 billion. During the same quarter in the previous year, the business earned $3.06 earnings per share. Lear’s revenue was up 3.0% compared to the same quarter last year.

Here are the key takeaways from Lear’s conference call:

• Strong second-quarter execution: Sales rose 3% to $6.2 billion, core operating earnings increased 7% to $313 million, adjusted EPS climbed 23% to $4.28, and free cash flow grew 69% to $288 million.
• Lear raised its full-year outlook, including approximately $23.8 billion in revenue and $640 million in free cash flow, and increased its share-repurchase target to at least $350 million for 2026.
• New business awards totaled approximately $2.9 billion year to date, led by major Audi Seating wins and additional awards with Chinese automakers; management said the backlog supports a return to roughly 3%–4% growth above market in 2028–2030.
• IDEA by Lear initiatives are generating measurable savings through automation and digital tools, with $35 million of IDEA savings and $50 million of restructuring savings achieved in the first half; Lear remains on track for $75 million and $80 million, respectively, for the full year.
• China remains the largest near-term risk, with weak domestic demand and continued share loss by traditional automakers; management expects limited growth in 2027, while third-quarter results face seasonal shutdowns and planned downtime for GM full-size truck changeovers.

Lear Stock Down 10.7%

Lear stock opened at $130.63 on Friday. The company has a quick ratio of 1.05, a current ratio of 1.33 and a debt-to-equity ratio of 0.51. Lear has a 12-month low of $91.67 and a 12-month high of $150.33. The firm’s fifty day moving average is $140.07 and its 200 day moving average is $131.11. The company has a market capitalization of $6.54 billion, a PE ratio of 12.17, a PEG ratio of 0.63 and a beta of 1.25.

Lear Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, June 23rd. Stockholders of record on Wednesday, June 3rd were paid a $0.77 dividend. The ex-dividend date was Wednesday, June 3rd. This represents a $3.08 annualized dividend and a dividend yield of 2.4%. Lear’s payout ratio is currently 30.80%.

Insider Activity at Lear

In other Lear news, CEO Raymond E. Scott sold 50,000 shares of the firm’s stock in a transaction on Wednesday, June 24th. The shares were sold at an average price of $135.37, for a total value of $6,768,500.00. Following the completion of the sale, the chief executive officer directly owned 49,789 shares in the company, valued at approximately $6,739,936.93. This trade represents a 50.11% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, SVP Nicholas Jon Roelli sold 2,336 shares of the company’s stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $141.38, for a total transaction of $330,263.68. Following the transaction, the senior vice president owned 2,339 shares in the company, valued at $330,687.82. This represents a 49.97% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 62,026 shares of company stock valued at $8,498,248 in the last ninety days. Insiders own 1.02% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in LEA. Altshuler Shaham Ltd bought a new stake in shares of Lear during the fourth quarter valued at approximately $25,000. WealthCollab LLC bought a new position in shares of Lear in the 2nd quarter worth $28,000. Los Angeles Capital Management LLC acquired a new stake in Lear in the 4th quarter valued at $30,000. Global Retirement Partners LLC grew its position in Lear by 942.3% in the 4th quarter. Global Retirement Partners LLC now owns 271 shares of the auto parts company’s stock valued at $31,000 after purchasing an additional 245 shares during the period. Finally, Allworth Financial LP increased its stake in Lear by 62.6% during the 3rd quarter. Allworth Financial LP now owns 309 shares of the auto parts company’s stock valued at $31,000 after purchasing an additional 119 shares in the last quarter. Institutional investors own 97.04% of the company’s stock.

More Lear News

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Lear reported second-quarter adjusted EPS of $4.28, above the approximately $3.98 consensus estimate, while revenue of $6.21 billion also exceeded expectations of roughly $6.15 billion. EPS rose from $3.06 a year earlier and revenue increased 3%. Lear Reports Second Quarter 2026 Results; Raises Full-Year Guidance
• Positive Sentiment: The company raised the midpoints of its 2026 outlook, targeting revenue of approximately $23.54 billion to $24.01 billion and core operating earnings of about $1.08 billion to $1.20 billion. Lear cited roughly 3% year-over-year revenue growth, gains above overall vehicle-market growth, and improving operating margins. Lear Reports Second Quarter 2026 Results; Raises Full-Year Guidance
• Positive Sentiment: Adjusted EPS increased about 23% year over year, free cash flow improved by approximately $117 million, and Lear repurchased $100 million of stock during the quarter. Lear Corporation 2026 Q2 Results Presentation
• Neutral Sentiment: Analyst price targets remain mixed, with recent targets ranging from $131 to $179 and a six-month median of $145.50, indicating differing views on Lear’s earnings power and automotive-market prospects.
• Negative Sentiment: Investors appear to have treated the results as a “sell-the-news” event because the guidance increase and margin improvement may not have exceeded already high expectations. Separately, reported insider activity showed 20 open-market sales and no purchases over the past six months, which may add to near-term sentiment pressure. Lear Slides After Q2 Despite Higher 2026 Outlook

Analyst Ratings Changes

Several research analysts have commented on LEA shares. Barclays lifted their target price on Lear from $150.00 to $155.00 and gave the stock an “equal weight” rating in a report on Thursday, July 9th. Weiss Ratings raised Lear from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Tuesday, June 23rd. TD Cowen upgraded Lear from a “hold” rating to a “buy” rating and raised their price objective for the stock from $138.00 to $165.00 in a research report on Tuesday, May 26th. Deutsche Bank Aktiengesellschaft set a $133.00 price objective on Lear in a research note on Monday, May 4th. Finally, Citigroup upped their target price on Lear from $177.00 to $179.00 and gave the company a “buy” rating in a report on Monday, May 4th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and nine have given a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $145.31.

About Lear

Lear Corporation (NYSE: LEA) is a global supplier of automotive seating and electrical distribution systems. The company designs, engineers and manufactures complete seat systems, seat components and power solutions for major vehicle manufacturers. Its electrical business delivers modules and components for battery management, infotainment, body and safety electronics, as well as advanced connectivity and electrification solutions.

The seating division develops lightweight, ergonomic seat structures, trim and mechanisms that address comfort, safety and environmental targets.