Lear (NYSE:LEA) Issues Earnings Results, Beats Expectations By $0.36 EPS

Lear (NYSE:LEA) released its earnings results on Friday. The auto parts company reported $3.87 earnings per share for the quarter, topping analysts’ consensus estimates of $3.51 by $0.36, Briefing.com reports. Lear had a return on equity of 13.40% and a net margin of 1.88%.The business had revenue of $5.82 billion for the quarter, compared to the consensus estimate of $5.84 billion. During the same period last year, the business earned $3.12 earnings per share. The firm’s revenue for the quarter was up 4.7% compared to the same quarter last year.

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

• Lear reported a strong quarter with sales up 5% to $5.8B, core operating earnings up 10%, and adjusted EPS of $3.87 (up 24%), alongside improved operating cash flow and $75M of share repurchases in Q1.
• Significant commercial wins broadened the backlog — including a GM full‑size SUV wire harness award, power distribution/module wins (and an Audi high‑voltage PDU), plus large China seating and harness awards that increased the two‑year backlog by about $250M (three‑year impact ~ $400M).
• Recent U.S. tariff changes produced a one‑time revenue reversal that reduces 2026 revenue by roughly $285M YoY (and about $385M vs. the February outlook) but management says there is no corresponding earnings impact due to passthroughs and recoveries.
• Productivity and automation under IDEA by Lear and recent acquisitions delivered ~$70M of savings in Q1 and are expected to yield ~$75M this year, supporting net‑performance targets of +40 bps (Seating) and +80 bps (E‑Systems).
• Management maintained full‑year guidance (citing macro and geopolitical caution) while noting Q2 is trending toward the midpoint‑to‑high end of the range and the company remains on pace to repurchase at least $300M of stock in 2026.

Lear Price Performance

Lear stock opened at $132.24 on Friday. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.35 and a quick ratio of 1.05. The company has a market capitalization of $6.70 billion, a PE ratio of 16.23, a price-to-earnings-growth ratio of 0.81 and a beta of 1.21. Lear has a one year low of $82.88 and a one year high of $142.84. The business has a 50 day simple moving average of $122.88 and a 200 day simple moving average of $117.74.

Lear Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Wednesday, March 25th. Investors of record on Thursday, March 5th were given a dividend of $0.77 per share. This represents a $3.08 annualized dividend and a dividend yield of 2.3%. The ex-dividend date was Thursday, March 5th. Lear’s dividend payout ratio (DPR) is 37.79%.

Insider Buying and Selling

In related news, VP Marianne Vidershain sold 1,590 shares of the firm’s stock in a transaction that occurred on Tuesday, February 24th. The stock was sold at an average price of $135.00, for a total transaction of $214,650.00. Following the completion of the transaction, the vice president owned 1,862 shares in the company, valued at $251,370. This trade represents a 46.06% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Harry Albert Kemp sold 7,000 shares of the firm’s stock in a transaction that occurred on Thursday, February 19th. The stock was sold at an average price of $136.31, for a total value of $954,170.00. Following the transaction, the senior vice president owned 17,423 shares of the company’s stock, valued at $2,374,929.13. This trade represents a 28.66% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 25,264 shares of company stock worth $3,400,687 over the last 90 days. Corporate insiders own 1.02% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. UMB Bank n.a. boosted its holdings in shares of Lear by 15.0% in the 4th quarter. UMB Bank n.a. now owns 676 shares of the auto parts company’s stock worth $77,000 after acquiring an additional 88 shares in the last quarter. Inspire Advisors LLC boosted its holdings in shares of Lear by 4.5% in the 4th quarter. Inspire Advisors LLC now owns 2,147 shares of the auto parts company’s stock worth $246,000 after acquiring an additional 92 shares in the last quarter. Allworth Financial LP boosted its holdings in shares of Lear by 62.6% in the 3rd quarter. Allworth Financial LP now owns 309 shares of the auto parts company’s stock worth $31,000 after acquiring an additional 119 shares in the last quarter. Advisors Asset Management Inc. boosted its holdings in shares of Lear by 2.1% in the 4th quarter. Advisors Asset Management Inc. now owns 5,899 shares of the auto parts company’s stock worth $676,000 after acquiring an additional 121 shares in the last quarter. Finally, Richwood Investment Advisors LLC boosted its holdings in shares of Lear by 4.9% in the 4th quarter. Richwood Investment Advisors LLC now owns 2,889 shares of the auto parts company’s stock worth $331,000 after acquiring an additional 135 shares in the last quarter. 97.04% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

LEA has been the topic of a number of recent research reports. Morgan Stanley lifted their target price on Lear from $112.00 to $123.00 and gave the stock an “equal weight” rating in a research report on Thursday, February 5th. Weiss Ratings reissued a “hold (c)” rating on shares of Lear in a research report on Thursday, January 22nd. The Goldman Sachs Group decreased their target price on Lear from $129.00 to $115.00 and set a “neutral” rating on the stock in a research report on Tuesday, April 14th. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and set a $120.00 target price on shares of Lear in a research report on Friday, April 17th. Finally, Benchmark initiated coverage on Lear in a research note on Thursday, February 19th. They issued a “buy” rating and a $170.00 price objective on the stock. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and eleven have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $134.92.

Key Stories Impacting Lear

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Q1 EPS beat and profit jump — Lear reported adjusted EPS of $3.87, topping consensus and marking its highest adjusted EPS since 2019 (and highest GAAP EPS since 2021); management cited strong demand in Seating and E‑Systems driving a roughly 24% profit increase. Lear Corp Crushes Earnings: Seating, E-Systems Drive 24% Profit Jump
• Positive Sentiment: Company press release and outlook — Lear’s PR stated Q1 results were the highest EPS levels in years and the company reaffirmed its FY2026 financial outlook, which supports upside sentiment. Lear Reports First Quarter 2026 Results; The Highest EPS Since 2021 And The Highest Adjusted EPS Since 2019
• Positive Sentiment: Analyst and media confirmation — Multiple outlets (Zacks, MarketBeat) highlight the EPS beat and rising profits; at least one analyst set a $134.92 price target ahead of the print, adding support to the rally. Lear (LEA) Q1 Earnings Surpass Estimates
• Neutral Sentiment: Revenue roughly flat to estimates — Revenue rose 4.7% year-over-year to $5.82B but narrowly missed the consensus (~$5.84B), so top-line momentum is positive but not materially stronger than expected. Lear earnings release / transcript
• Negative Sentiment: Margins and net income context — Despite higher EPS, Lear’s reported net margin was modest (~1.9%), indicating profits are sensitive to mix, costs and lower industry vehicle output; this could cap enthusiasm if auto production weakens. Lear 1Q Profit, Revenue Rise Despite Lower Auto Output

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.