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BWA · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is BorgWarner Inc. (BWA) stock moving?
BWA closed at $50.45 on Nov 10, about 10% below its $55.93 close on Oct 28 and 6% above the Nov 5 low of $47.53. The sell-off began with the Oct 29 Q3 report, which came with a volume spike to 5.97M shares, and continued through Nov 5 on 4.33M shares. Since then the stock has rebounded to $51.44 on Nov 9 before slipping, while volume has eased to about 2.3M shares a day. Q3 GAAP net sales fell 2.9% to $3,487M and organic sales fell 3.1%, but GAAP EPS rose 47.9% to $1.08 and adjusted operating margin reached 10.9%. The company also cut gross debt by $864M, repurchased about $175M of stock and paid a $35M dividend. FY2026 adjusted EPS guidance was raised to $5.20-$5.35, sales guidance was narrowed to $14.0B-$14.2B, and GAAP EPS guidance was lowered to $4.65-$4.84. Several new awards support longer-term growth, with production starting between 2026 and 2029. Analysts kept positive or neutral ratings but cut price targets across the board after the report, ranging from $67 (TD Cowen, Hold) to $89 (Morgan Stanley). J.P. Morgan reaffirmed Buy and $85 on Nov 10. Every target in the news set sits above the current price, but the cuts and the lower GAAP EPS guidance show the market is pricing in weaker top-line trends.
News behind the analysis
- J.P. Morgan Maintains Buy Rating on BorgWarnerJ.P. Morgan reaffirmed its Buy rating and $85 price target on BorgWarner. The reaffirmation came after the Q3 report and the wave of target cuts.
- Barclays Maintains Overweight Rating on BorgWarner, Lowers Price Target to $80Barclays kept its Overweight rating and cut its price target from $85 to $80.
- Evercore ISI Group Maintains Outperform on BorgWarner, Lowers Price Target to $72Evercore ISI kept its Outperform rating and set a $72 price target after lowering it.
- Deutsche Bank Adjusts BorgWarner Price TargetDeutsche Bank lowered its price target from $79 to $74 and kept its Buy rating.
- RBC Lowers Price Target on BorgWarner to $75 From $87RBC Capital Markets cut its price target from $87 to $75 and kept its Outperform rating.
- Morgan Stanley Maintains Overweight on BorgWarner, Lowers Price Target to $89Morgan Stanley kept its Overweight rating and cut its price target to $89.
- TD Cowen Maintains Hold on BorgWarner, Lowers Price Target to $67TD Cowen kept its Hold rating and cut its price target to $67, the lowest target in the set.
- CORRECTION: BorgWarner Raises FY2026 Adj EPS Guidance from $5.05-$5.30 to $5.20-$5.35 vs $5.21 Est; Narrows FY2026 Sales Guidance from $14.000B-$14.300B to $14.000B-$14.200B vs $14.197B EstBorgWarner raised FY2026 adjusted EPS guidance to $5.20-$5.35 and narrowed sales guidance to $14.000B-$14.200B with its Q3 report. Q3 GAAP net sales were $3,487M, down about 2.9%.
- CORRECTION: BorgWarner Lowers FY2026 GAAP EPS Guidance from $4.72-$4.94 to $4.65-$4.84 vs $4.75 EstBorgWarner lowered FY2026 GAAP EPS guidance to $4.65-$4.84, below the prior range. The cut reflects non-comparable items disclosed with Q3.
- BorgWarner Wins Contract for Next-Generation High-Voltage Traction InvertersBorgWarner won a contract to supply next-generation high-voltage traction inverter technology for a major global automaker's future EV programs.
About BorgWarner Inc.
BorgWarner is a Michigan-based auto parts maker with more than 130 years of history. It supplies carmakers with powertrain technology for gasoline, hybrid and electric vehicles, such as turbochargers, drivetrain parts, inverters and eMotors, and it has recently started selling turbine generator systems for data-center power.
How it makes money
It sells engineered parts straight to global vehicle makers, both for cars and for commercial vehicles. Its expected sales for 2026 are about $14 billion. Most of that comes from traditional engine, turbocharger and drivetrain products. Sales of electrified products (eProducts) like inverters and eMotors are growing quickly, up about a third year over year in Q3 2026, while its battery systems business is shrinking. A small but growing share comes from power generation, including turbine generators for AI data centers.
What usually moves BWA
- Global light and commercial vehicle production volumes
- Pace of hybrid and EV adoption
- Emissions regulations and tariffs
- New contracts for inverters and eMotors
- Data-center power generation growth