Volkswagen scraps 2026 revenue growth forecast, sees decline

Volkswagen scrapped its 2026 revenue growth forecast today, now expecting sales to decline up to 3% after a 9.5% profit slump in the second quarter. The German auto group had previously forecast growth of up to 3%.

The company reported an operating profit of €3.5 billion for the three months through June. Analysts polled by Visible Alpha had expected €3.9 billion.

CEO Oliver Blume is pushing a radical restructuring that includes 100,000 job cuts to improve cost competitiveness. He said the group offset "continued unavoidable headwinds in the double-digit billions" in the first half.

Blume described the environment as "extremely challenging" because of geopolitical crises, trade conflicts, high regulatory requirements, volatile markets and intensified competition.

Volkswagen maintained its operating margin forecast of 4% to 5.5% for the year.