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LEA · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Lear Corporation (LEA) stock moving?
Lear's Q3 2026 report on Oct 30 mixed a beat with a guidance cut. Adjusted EPS of $3.71 beat the $3.37 estimate and adjusted net income rose 23%, but sales of $5.773B missed the $5.808B estimate. Management lowered FY26 sales guidance to $23.35B-$23.75B, cut operating cash flow and free cash flow guidance by $25M at both ends, and raised restructuring costs to about $200M. Adjusted EBITDA ($1.70B-$1.82B) and core operating earnings ($1.08B-$1.20B) guidance were maintained, and the $350M full-year buyback target was completed. On Nov 2, Evercore ISI (In-Line, target cut to $140 from $145) and RBC Capital (Sector Perform, target $135) lowered their price targets. The stock peaked at a $124.30 intraday high on Nov 2 and closed at $122.29, then fell to a $109.60 close on Nov 10, about 10% below the Nov 2 close and at the lowest level in the 30-day window. The Nov 10 session traded about 1.02M shares, roughly 1.6 times the prior 10-day average of about 642K, with an intraday low of $107.94. The decline has been steady and volume-backed, with no new company news in the last two weeks to offset the post-earnings reset.
News behind the analysis
- Evercore ISI Group Lowers Lear Corporation Price TargetEvercore ISI kept its In-Line rating on Lear and cut its price target from $145 to $140.
- Lear Analysts Slash Their Forecasts Following Q3 ResultsLear beat Q3 EPS estimates but missed on sales and cut FY2026 revenue guidance, and analysts lowered their price targets.
- RBC Capital Maintains Sector Perform on Lear, Lowers Price Target to $135RBC Capital kept its Sector Perform rating on Lear and lowered its price target to $135.
- Lear Corporation Reports Third Quarter 2026 Financial ResultsQ3 revenue rose 2% to $5.8B and adjusted EPS rose 33% to $3.71, while the company repurchased $175M of shares and hit its $350M full-year buyback target.
- Lear Lowers FY2026 Sales Guidance from $23.540B-$24.010B to $23.350B-$23.750B vs $23.798B EstLear cut its FY2026 sales guidance to $23.35B-$23.75B, below the $23.80B consensus estimate.
- Lear Q3 Adj. EPS $3.71 Beats $3.37 Estimate, Sales $5.773B Miss $5.808B EstimateAdjusted EPS beat estimates by about 10%, but sales of $5.773B fell short of the $5.808B estimate.
- Lear Sees FY26 Free Cash Flow $565M-$665M, Prior $590M-$690MLear lowered its FY26 free cash flow outlook by $25M at both ends of the range.
- Lear Maintains FY26 Adj EBITDA $1.70B-$1.82BLear kept its FY26 adjusted EBITDA guidance unchanged at $1.70B-$1.82B.
- Lear Sees FY26 Restructuring Costs ~$200M, Prior ~$175MLear raised its expected FY26 restructuring costs to about $200M from about $175M.
About Lear Corporation
Lear Corporation, based in Southfield, Michigan, is a major global auto parts supplier that makes car seats and vehicle electrical systems for automakers. It's one of the world's largest seating suppliers and also makes wiring and electrical parts used in both gasoline and electric vehicles. It's guiding to roughly $23.4–23.8 billion in 2026 sales.
How it makes money
Lear sells parts under multi-year contracts to automakers such as GM, Ford, Stellantis and European and Chinese brands. Seating (complete seats, frames, foam, covers and mechanisms) brings in roughly three-quarters of revenue. E-Systems (wire harnesses, connectors and power electronics) makes up the remaining quarter or so. Lear also pays a dividend and buys back its own shares.
What usually moves LEA
- Global vehicle production volumes, especially in North America, Europe and China
- New business wins and old car models being discontinued
- Labor, raw material and tariff costs and how they affect profit margins
- How quickly electric vehicles are adopted and how much electrical content each vehicle carries
- Share buybacks and free cash flow