Volkswagen Slashes FY26 Profit Guidance, Shares Tumble 7.5%

Volkswagen AG (ETR:VOW) shares dropped 7.5% after the automaker significantly cut its fiscal year 2026 operating return on sales guidance to up to 1%, down from a previous forecast of 4% to 5.5% 🔗.

Key factors cited for the reduced outlook include:

• A €6 billion non-cash goodwill impairment related to Porsche AG.
• A challenging market environment, particularly in China.
• Additional restructuring expenses and asset impairments in China, totaling around €2 billion in H2 2026.

The company now expects group sales revenue of around €315 billion, maintaining its net cash flow guidance 🔗.