Ford Motor raised its earnings forecast for 2026 after surpassing Wall Street’s expectations for second-quarter earnings, despite missing revenue projections. The company reported adjusted earnings per share of 42 cents, beating the anticipated 35 cents, while automotive revenue stood at $44.89 billion, just below the $45.86 billion expected. Following the results, Ford’s stock rose nearly 7% in after-hours trading.

The increased guidance reflects Ford’s operational improvements, strong vehicle pricing, and a profitable sales mix. The company now anticipates full-year adjusted earnings before interest and taxes between $10 billion and $11 billion, up from the previous range of $8.5 billion to $10.5 billion. Ford also raised its forecast for adjusted free cash flow to $6 billion to $7 billion, boosted by an accelerated $500 million cash recovery related to a previously announced $1.3 billion tariff reimbursement.

CEO Jim Farley highlighted the company’s transformation toward greater profitability and discipline, noting specific improvements in Ford’s traditional Blue business and fleet operations. Ford reduced expected losses for its Model e electric vehicle segment from $4 billion-$4.5 billion to about $4 billion, alongside anticipated better results for its financial services arm. However, the quarter included a net loss of $1.3 billion due in part to a $4.2 billion charge tied to restructuring and the cancellation of an EV program.

Ford also addressed challenges stemming from production disruptions in its F-Series pickup truck line caused by fires at an aluminum supplier. CFO Sherry House confirmed that production recovery continues and forecasted a roughly $1 billion EBIT improvement this year, heavily weighted to the second half. The company aims to regain $2.5 billion of vehicle volume lost, on the lower end of prior expectations, due to the mix of vehicles anticipated for production.