BMW Q3 2026: Profit Falls and Car Margin Target Cut to Zero

BMW Cuts Its 2026 Car Margin Forecast Again After a Weak Third Quarter

BMW has cut its 2026 margin forecast for the car business for the second time this year, to between minus 0.5% and plus 0.5%, after group operating profit fell 29.7% in the third quarter. The warning came on 3 November and the full quarterly report on 4 November, BMWBLOG and Euronews reported.

Third-quarter figures

The quarter was weaker across the main lines. Revenue fell to 30.452 billion euros in the third quarter of 2026, from 32.314 billion a year earlier, and group EBIT dropped 29.7% to 1.589 billion. Pre-tax profit fell 10.6% to 2.083 billion, and earnings per share came in at 2.46 euros in the third quarter of 2026, against 2.74 euros a year before. Deliveries of the BMW brand fell 6.8% to 479,294, MINI slipped 2.4% to 70,712 and Rolls-Royce dropped 18% to 1,069 cars. Sales in Europe rose 2.6% and in the US 2.5%, which could not offset the slump in China.

Why the forecast fell again

BMW started 2026 expecting a car margin of 4-6%, cut that to 1-3% in June because of a weaker Chinese market and higher energy costs linked to the Middle East conflict, and has now lowered it to around zero. The new hit is a non-operating charge in the fourth quarter. BMW will retire selected models based on Gen5 battery technology early because demand for the Neue Klasse is strong, and it has added production shifts to speed up that ramp-up. The company did not name the models, though BMWBLOG noted that Gen5 cells are used in the i5, i7 and current iX. Excluding these costs, BMW still expects a car margin above 2%, and its target of more than 2.5 billion euros of automotive free cash flow for 2026 is unchanged. Full-year deliveries are now expected to fall moderately.

Restructuring and China

BMW is also speeding up its overhaul of management and processes. A workforce plan agreed with the works council in July covers about 8,000 jobs worldwide, mostly office roles in Germany, to be cut through voluntary exits and natural turnover between October 2026 and the end of 2027. Chief executive Milan Nedeljkovic said the industry situation called for "decisiveness and swift implementation". Separately, CnEVPost reported on 3 November that the BMW Brilliance joint venture in Shenyang was cutting about 1,800 jobs, roughly 10% of its staff, a figure BMW had not confirmed.

What it means for buyers

The early end of some Gen5 electric models matters most to people shopping for a current i5, i7 or iX. Ask the dealer how long the model you want will stay in production and what that may mean for resale values. Buyers waiting for a Neue Klasse car such as the iX3 should see shorter lead times as extra shifts come on line.

See the specifications of the BMW iX electric SUV or browse the BMW catalogue.