Lear (NYSE:LEA) Posts Earnings Results, Beats Expectations By $0.30 EPS

Lear (NYSE:LEA) announced its quarterly earnings results on Friday. The auto parts company reported $4.28 earnings per share (EPS) for the quarter, beating the consensus estimate 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 period in the previous year, the firm posted $3.06 EPS. The firm’s revenue was up 3.0% on a year-over-year basis.

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 Trading Down 10.7%

Shares of NYSE:LEA traded down $15.70 during mid-day trading on Friday, reaching $130.63. 2,070,968 shares of the company’s stock were exchanged, compared to its average volume of 604,482. The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.05 and a current ratio of 1.33. Lear has a twelve month low of $91.67 and a twelve month high of $150.33. The firm has a market capitalization of $6.54 billion, a price-to-earnings ratio of 13.06, a PEG ratio of 0.71 and a beta of 1.25. The business’s fifty day moving average price is $140.25 and its 200-day moving average price is $131.12.

Lear Announces Dividend

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

Analyst Upgrades and Downgrades

A number of research firms have weighed in on LEA. The Goldman Sachs Group boosted their target price on shares of Lear from $115.00 to $131.00 and gave the stock a “neutral” rating in a research note on Monday, May 4th. Morgan Stanley set a $130.00 price objective on Lear in a report on Monday, May 4th. TD Cowen upgraded Lear from a “hold” rating to a “buy” rating and boosted their price objective for the stock from $138.00 to $165.00 in a research report on Tuesday, May 26th. UBS Group lowered their target price on Lear from $145.00 to $135.00 and set a “neutral” rating for the company in a report on Tuesday, April 14th. Finally, Citigroup increased their target price on Lear from $177.00 to $179.00 and gave the company a “buy” rating in a research report on Monday, May 4th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and nine have assigned a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of “Hold” and an average target price of $144.62.

Lear News Roundup

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

Insider Buying and Selling

In related news, CFO Jason M. Cardew sold 5,000 shares of the firm’s stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $147.50, for a total transaction of $737,500.00. Following the completion of the transaction, the chief financial officer directly owned 13,241 shares of the company’s stock, valued at $1,953,047.50. This trade represents a 27.41% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Raymond E. Scott sold 50,000 shares of Lear stock in a transaction dated Wednesday, June 24th. The stock was sold at an average price of $135.37, for a total value of $6,768,500.00. Following the transaction, the chief executive officer directly owned 49,789 shares in the company, valued at $6,739,936.93. The trade was a 50.11% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 62,026 shares of company stock valued at $8,498,248 in the last quarter. 1.02% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Lear

A number of hedge funds and other institutional investors have recently made changes to their positions in LEA. Balyasny Asset Management L.P. acquired a new stake in Lear during the 2nd quarter valued at approximately $39,656,000. Caisse de depot et placement du Quebec acquired a new position in shares of Lear in the 3rd quarter worth approximately $40,984,000. AQR Capital Management LLC lifted its position in shares of Lear by 34.1% in the 4th quarter. AQR Capital Management LLC now owns 789,745 shares of the auto parts company’s stock worth $90,505,000 after purchasing an additional 200,617 shares during the period. Millennium Management LLC boosted its stake in shares of Lear by 4,256.1% in the 4th quarter. Millennium Management LLC now owns 155,424 shares of the auto parts company’s stock valued at $17,812,000 after purchasing an additional 151,856 shares during the last quarter. Finally, Jacobs Levy Equity Management Inc. boosted its stake in shares of Lear by 20.6% in the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 734,087 shares of the auto parts company’s stock valued at $73,856,000 after purchasing an additional 125,422 shares during the last quarter. 97.04% of the stock is owned by institutional investors and hedge funds.

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.