Audi cuts 2026 revenue forecast as second-quarter profit falls and margins tighten
Audi revenue forecast trimmed to €58–63bn; Q2 after-tax profit down 21% to €563m as China and US demand softens.
Audi revenue forecast hit by weaker sales and margin pressure, the Volkswagen subsidiary said, reducing its full-year revenue guidance to €58–63 billion and lowering expected operating return to 5–7 percent. The company reported that second-quarter after-tax profit dropped about 21 percent to €563 million, and warned that earlier cost-saving steps are not yet sufficient to offset market headwinds. Audi’s statements cover the broader Audi Group within Volkswagen, including premium marques such as Lamborghini, Bentley and Ducati.
Details of the revised full-year guidance
The updated guidance reduces Audi’s top-line outlook by €5 billion from the projection issued in April, reflecting slower-than-expected demand in key markets. Management now expects revenue between €58 billion and €63 billion for the year, with an operating return narrowed to a 5–7 percent band, roughly one percentage point below the prior view. The cut underscores mounting pressure on the automaker’s profitability as pricing conditions and volumes deteriorate.
Second-quarter profit and reporting scope
Audi reported a second-quarter net profit of €563 million after taxes, down roughly 21 percent year-on-year. The results are presented for Audi as a sub-group within Volkswagen, which means they include income and costs from affiliated premium brands such as Lamborghini, Bentley and Ducati. That broader reporting scope highlights how group dynamics and consolidated accounting for joint ventures affect the headline figures.
CFO signals need for deeper cost action
Finance chief Jürgen Rittersberger said existing savings programs are producing results but fall short of what is needed in the current environment. He emphasized the need to become more competitive and efficient, to rework cost structures and to accelerate decision-making processes. Rittersberger expressed cautious optimism that improved product introductions and lower costs could deliver a better second half of the year.
China and U.S. sales weaken contribution
Audi cited softer demand in China and the United States as principal drivers of the revenue shortfall and margin squeeze. In the first half of the year the automaker booked €73 million from its China operations in its financial results, a figure the company said is roughly one-quarter of the contribution posted in the same period last year. That decline reflects the uneven recovery in Chinese luxury demand and intensifying local competition that has pressured pricing and volumes.
Competitive pricing and margin pressure
Price competition in several markets has weighed on average transaction prices and compressed margins across the premium segment. Audi faces stronger rivalry not only from traditional German rivals but also from Chinese and U.S. entrants that have been aggressive on pricing and incentives. Management has signaled that without further structural cost reductions and faster product rollouts, the company will struggle to restore its previously expected return on sales.
Second-half outlook tied to new models and cost reduction
Audi is banking on a traditionally stronger second half and on new model introductions to help offset first-half weakness and improve profitability. The company highlighted the potential for lower unit costs and refreshed products to lift margins if market acceptance is solid. However, Audi also stressed that recovery is contingent on stable demand in China and the U.S. and on avoiding renewed macroeconomic or supply-chain disruptions.
The revised Audi revenue forecast and the fall in quarterly profit underline the intensity of competitive pressure facing premium automakers this year. Management plans to deepen efficiency measures and speed decisions while monitoring market developments closely as it seeks to protect margins and restore growth momentum in the second half.
