BorgWarner (NYSE:BWA) Releases FY 2026 Earnings Guidance

BorgWarner (NYSE:BWA) updated its FY 2026 earnings guidance on Wednesday. The company provided EPS guidance of 5.000-5.200 for the period, compared to the consensus EPS estimate of 5.150. The company issued revenue guidance of $14.0 billion-$14.3 billion, compared to the consensus revenue estimate of $14.2 billion.

Wall Street Analyst Weigh In

BWA has been the subject of several research reports. Evercore reaffirmed an “outperform” rating and issued a $75.00 price target on shares of BorgWarner in a research report on Tuesday, February 17th. The Goldman Sachs Group raised their price target on shares of BorgWarner from $54.00 to $78.00 and gave the stock a “buy” rating in a report on Thursday, February 12th. Morgan Stanley set a $60.00 target price on shares of BorgWarner in a report on Thursday, February 12th. Wells Fargo & Company dropped their price target on shares of BorgWarner to $68.00 and set an “overweight” rating on the stock in a research report on Tuesday, March 31st. Finally, Piper Sandler restated a “neutral” rating and set a $51.00 price target (down from $52.00) on shares of BorgWarner in a research report on Thursday, January 8th. Seven investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $66.77.

BorgWarner Price Performance

Shares of NYSE BWA traded up $2.15 during trading on Wednesday, hitting $59.41. The company had a trading volume of 4,678,303 shares, compared to its average volume of 1,872,992. The stock has a fifty day simple moving average of $54.40 and a two-hundred day simple moving average of $49.74. BorgWarner has a fifty-two week low of $29.41 and a fifty-two week high of $70.08. The firm has a market capitalization of $12.24 billion, a price-to-earnings ratio of 47.52, a price-to-earnings-growth ratio of 1.20 and a beta of 1.00. The company has a quick ratio of 1.70, a current ratio of 2.07 and a debt-to-equity ratio of 0.69.

BorgWarner (NYSE:BWA) last announced its earnings results on Wednesday, May 6th. The auto parts company reported $1.24 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.16 by $0.08. BorgWarner had a net margin of 1.93% and a return on equity of 17.89%. The business had revenue of $3.53 billion for the quarter, compared to analyst estimates of $3.50 billion. During the same quarter last year, the business earned $1.11 earnings per share. The company’s revenue for the quarter was up .5% compared to the same quarter last year. BorgWarner has set its FY 2026 guidance at 5.000-5.200 EPS. On average, research analysts expect that BorgWarner will post 5.14 earnings per share for the current year.

BorgWarner Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, June 15th. Shareholders of record on Monday, June 1st will be issued a $0.17 dividend. This represents a $0.68 annualized dividend and a yield of 1.1%. The ex-dividend date is Monday, June 1st. BorgWarner’s payout ratio is presently 54.40%.

Insider Buying and Selling

In other BorgWarner news, VP Stefan Demmerle sold 2,500 shares of the business’s stock in a transaction dated Tuesday, March 10th. The shares were sold at an average price of $53.03, for a total value of $132,575.00. Following the transaction, the vice president directly owned 233,746 shares in the company, valued at $12,395,550.38. The trade was a 1.06% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, EVP Tonit M. Calaway sold 16,000 shares of the business’s stock in a transaction dated Friday, February 13th. The shares were sold at an average price of $65.08, for a total transaction of $1,041,280.00. Following the completion of the transaction, the executive vice president owned 240,251 shares in the company, valued at $15,635,535.08. The trade was a 6.24% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 78,083 shares of company stock worth $4,638,585 over the last ninety days. 0.76% of the stock is currently owned by insiders.

BorgWarner News Roundup

Here are the key news stories impacting BorgWarner this week:

• Positive Sentiment: Q1 earnings beat — BorgWarner reported $1.24 EPS vs. consensus $1.16 and $3.53B revenue vs. $3.50B, driven by margin improvement and operational execution. MarketBeat: Q1 results & presentation
• Positive Sentiment: Multiple new program awards — BorgWarner announced turbocharger, VTG/EGR and hybrid/combustion wins across Europe and Asia, expanding content on passenger cars, vans, commercial trucks and hybrid powertrains (supports long‑term revenue visibility). PR Newswire: Turbocharger awards
• Positive Sentiment: Shareholder returns — Management returned $185 million to shareholders in Q1, signaling free‑cash‑flow conversion and capital allocation discipline. PR Newswire: Q1 results & shareholder returns
• Neutral Sentiment: FY‑2026 guidance largely in line with expectations — company set EPS guidance of $5.00–$5.20 and revenue $14.0–$14.3B, roughly matching consensus; reduces surprise risk but limits upside from guidance alone. PR Newswire: Guidance
• Neutral Sentiment: Cost controls helping margins; exit of charging business noted — management highlighted margin improvement from cost actions and the strategic exit of its charging business, which offsets weaker organic volumes but narrows future EV charging exposure. Zacks: Cost controls & charging exit
• Negative Sentiment: Underlying demand mixed and organic sales down — organic sales declined ~4.2% year‑over‑year and some segments showed softness, which could pressure revenue growth if new awards and margins don’t fully offset volume weakness. Zacks: Organic sales decline & mixed demand

Hedge Funds Weigh In On BorgWarner

Several large investors have recently made changes to their positions in BWA. Acadian Asset Management LLC lifted its holdings in shares of BorgWarner by 23.7% in the 1st quarter. Acadian Asset Management LLC now owns 8,979 shares of the auto parts company’s stock worth $257,000 after acquiring an additional 1,723 shares during the last quarter. Sivia Capital Partners LLC acquired a new stake in BorgWarner during the 2nd quarter worth approximately $339,000. EverSource Wealth Advisors LLC lifted its holdings in BorgWarner by 400.5% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 5,531 shares of the auto parts company’s stock worth $185,000 after buying an additional 4,426 shares in the last quarter. Marshall Wace LLP acquired a new stake in BorgWarner during the 2nd quarter worth approximately $247,000. Finally, Cerity Partners LLC lifted its holdings in BorgWarner by 30.2% during the 2nd quarter. Cerity Partners LLC now owns 143,841 shares of the auto parts company’s stock worth $4,816,000 after buying an additional 33,362 shares in the last quarter. 95.67% of the stock is currently owned by institutional investors and hedge funds.

About BorgWarner

BorgWarner Inc is a global automotive supplier specializing in propulsion and drivetrain solutions for combustion, hybrid and electric vehicles. The company’s product portfolio includes turbochargers, thermal management systems, transmission components, e-Propulsion modules and advanced fuel-efficiency technologies. BorgWarner serves original equipment manufacturers (OEMs) across passenger cars, light trucks and commercial vehicles, supporting both legacy internal-combustion engines and emerging electrification trends.

Founded in 1928 through the merger of several driveline companies, BorgWarner has grown through strategic acquisitions and continuous investment in research and development.