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 German luxury automaker Mercedes-Benz reported a 22% increase in second-quarter operating profit, but warned of ongoing pressure on its core automotive business, prompting the company to lower its full-year 2026 sales and revenue forecasts due to persistent weakness in the Chinese market.

Quarterly Earnings and Analyst Estimates

The Stuttgart-based group reported Earnings Before Interest and Taxes (EBIT) of €1.5 billion ($1.71 billion) for the second quarter (April–June), up 22% year-on-year. However, the figure missed average analyst expectations of €1.6 billion, according to a poll conducted by Visible Alpha.

Lowered 2026 Guidance

In light of market headwinds, Mercedes-Benz now projects group revenue and car sales for full-year 2026 to come in slightly below 2025 levels, dialing back its previous forecast of flat performance. The adjustment reflects ongoing demand challenges in China, one of the luxury automaker's most crucial global markets.

Financial Services and One-Off Gains Support Results

Despite auto division pressure, overall group performance was bolstered by solid contributions from:

Commercial Vans & Financial Services: Strong operational performance across both divisions supported quarterly margins.

Athlon Subsidiary Sale: Results benefited from a €131 million gain associated with the planned sale of its vehicle leasing subsidiary, Athlon.