Harley-Davidson (HOG) stock slipped about 1% in premarket trading Thursday after the company posted weaker Q2 earnings, though the results still beat some analyst expectations.
Q2 net income came in at $80 million, or $0.75 per share, down from $108 million, or $0.88 per share, in the same period last year. Revenue fell 6% to $1.23 billion year-over-year.
Earnings per share were $0.11 ahead of analyst expectations, which offered some cushion despite the overall decline.
$HOG Q2 2026 earnings: Core Business Ignites, Sparking Guidance Raise
Harley-Davidson delivered a solid Q2 defined by a 6% revenue growth in its core HDMC segment, snapping a streak of top-line declines. The 6% drop in consolidated revenue is a red herring—driven entirely by the… pic.twitter.com/3hY38V5yDy
— Finsee (@Finsee_main) July 23, 2026
Gross margin narrowed to 27.5% from 28.6% a year ago, hurt by higher raw material costs, an unfavorable product mix, and foreign exchange headwinds.
The company shipped 39,200 motorcycles during the quarter — a 9.4% jump year-over-year, but still below Wall Street’s estimate of 40,810 units.
Worldwide sales edged up 1%. North America grew 3% and Latin America added 4%, but EMEA slipped 9% and Asia Pacific was flat.
Operating income fell 32%, driven largely by weakness in its financial services division, HDFS, which is transitioning to a capital-light model.
CEO Artie Starrs has been steering the company away from premium touring models toward lighter, more affordable bikes. The entry price point now starts around $10,000.
The “Back to the Bricks” plan aims to bring back iconic Harley models and attract younger riders with smaller-engine options — a deliberate pivot from the brand’s traditional customer base.
The electric division, LiveWire, trimmed its operating loss to $18 million from $19 million in the same quarter last year — a small but steady improvement.
Full-year LiveWire assumptions call for an operating loss of $70M–$80M, with capital investment of $175M–$200M.
Despite the quarterly miss, Harley raised its full-year retail sales forecast to 133,500–138,500 units, up from the prior range of 130,000–135,000.
HDMC operating income guidance was raised to $10M–$50M, a notable swing from the prior outlook of -$40M to $10M profit.
HDFS operating income guidance was also lifted, now seen at $55M–$65M versus the prior range of $45M–$60M.
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