DETROIT, July 22, 2026, 1:10 p.m. EDT — U.S. markets are open.
- Ford shares hovered around $14.47, roughly 1.5% higher than FactSet’s median price target.
- General Motors NYSE:GM increased its North American margin even though sales declined.
- Ford reported a 10% decline in U.S. sales for the second quarter, with rental sales plunging 69%.
Ford stock climbed 1.4% on Wednesday, reaching roughly $14.47. The gain lifted shares past FactSet’s median target with six days to go before the company’s earnings report.
The increase came after GM reported a stronger quarter and raised its outlook for the full year. However, Ford benefited less from the same boost. GM shares rose 4.2%.
Investor takeaway is limited. GM demonstrated that profit can rise with reduced volume if pricing and mix remain strong.
Ford is confronted with a more challenging test as its U.S. sales dropped by a factor of 2.5 compared to GM’s regional decrease.
| Measure | Ford | General Motors |
|---|---|---|
| Wednesday stock change | +1.4% | +4.2% |
| Q2 sales variation | U.S. deliveries -10% | North America deliveries -4% |
| Profitability indicator | Rental sales down -69% | U.S. vehicle average price roughly $52,000 |
| Most recent margin | Ford Blue 8.1%; Ford Pro 11.4% during Q1 | North America 8.6% for Q2 |
| 2026 adjusted EBIT outlook | $8.5 billion-$10.5 billion | $14 billion-$16 billion |
Ford’s segment margins and GM’s regional margin refer to separate business activities and timeframes.
Ford posted a 10% decline in sales, a figure impacted by more than just weaker demand. The automaker discontinued both the Escape and Lincoln Corsair, and also made significant cuts to sales to the lower-margin rental segment.
Ford said sales would have increased by 0.5% if not for those model transitions. The initial company estimate also presumes stable rental volumes.
The sales mix that remained offered improved profit prospects. Sales of Bronco, Explorer and Expedition together increased by 10.1% in the first half. F-Series sales totaled 357,801 units.
GM delivered the clearest example. Its North American margin increased to 8.6% from 6.1%, even as sales fell. CFO Paul Jacobson said customers have “been very resilient.” Reuters
Ford’s recent margin baseline remained strong. In the first quarter, Ford Blue recorded an 8.1% margin, while Ford Pro achieved 11.4%.
CFO Sherry House stated that “the path to higher margins is clear.” Ford projected adjusted EBIT in the range of $8.5 billion to $10.5 billion for this year. Ford Shareholder Services
The stock offers little tolerance for underwhelming evidence. FactSet projects second-quarter EPS at $0.36, representing a 2.7% decline compared to the previous year.
FactSet data shows an average price target of $14.97, suggesting potential upside of approximately 3.5%. Ford underperformed on Wednesday, missing the automotive sector’s 3.1% advance.
Ford Blue and Ford Pro margins remain key metrics for investors. Developments in F-Series supply and ongoing Model e losses are also significant. Ford projects a loss of $4.0 billion-$4.5 billion for Model e this year.
Another expense concern emerged on Tuesday. Reuters disclosed that one U.S. provider of connectivity modules faces a 5% to 15% price difference. Ford has additionally requested approval to continue importing certain models made in China.
Aluminum, tariffs, warranty expenses and investment in EVs continue to pose risks. Ford is expecting commodity headwinds near $2 billion and tariff effects of about $1 billion.
GM has demonstrated the model. Now, Ford needs to show that its lower-volume quarter delivered stronger economics.
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