Audi Cuts 2026 Revenue Forecast to €58–63 Billion, Keeps Cash Flow Outlook Steady
Key Facts
Audi said on July 27 that it had cut its financial outlook for fiscal 2026, citing a more challenging market environment, particularly in China, and geopolitical escalation in the Middle East. The company now expects revenue of €58–63 billion and an operating margin of 5%–7%. Its original forecast called for revenue of €63–68 billion and an operating margin of 6%–8%. Audi kept its net cash flow forecast at €3–4 billion, the same range it had previously announced. The company said, "The Audi Group has revised its outlook for fiscal 2026" in light of these conditions.
The revision followed first-half 2026 revenue of €29.177 billion, compared with €32.573 billion in the same period a year earlier. Operating profit, by contrast, rose to €1.122 billion from €1.087 billion. Audi said the revenue decline was mainly attributable to lower sales volumes in a difficult and highly competitive market, particularly in China and the United States. It added that an unfavorable product mix weighed on revenue, alongside lower revenue from spare parts and components used in local production in China. Revenue therefore declined while operating profit posted a modest year-on-year increase.
Deliveries of the Audi brand in China, including Hong Kong, fell to 232,227 vehicles in the first half of 2026 from 287,600 a year earlier. The company had delivered 127,109 vehicles in China in the first quarter, down 12% year on year. Audi attributed the first-quarter decline to macroeconomic uncertainty, intensifying competition and model changes. In the opposite direction, deliveries of fully electric models in China rose by about 28% in the same quarter. The results therefore place weakness in deliveries in the Chinese market alongside growth in the electric-vehicle segment there.
The group's net cash flow was €1.885 billion in the first half, up from €904 million in the corresponding period of 2025. Audi said the improvement benefited from positive working-capital developments. The result shows that cash flow rose in the first half despite lower revenue than in the previous period. The company nevertheless kept its full-year cash flow forecast at €3–4 billion. The revision did not change this range, unlike its revenue and operating margin forecasts.
Audi said in its first-quarter results announcement that its 2026 outlook was based on the tariff situation as it stood at the end of April. It added at the time that the potential effects of any further escalation in the Middle East had not been included, as they could not be reliably assessed. In the first-quarter results, operating profit was €588 million, up about 10%, while revenue was €14.178 billion, down about 8%. Chief Financial Officer Jürgen Rittersberger said then that the performance "clearly shows that we need to act urgently," pointing to work on the cost structure and efforts to advance efficiency measures. In April, the company announced an expansion of its offerings tailored to China, saying its local partnerships with FAW and SAIC support its strategy in the market.
Among the models Audi introduced for the Chinese market is the A6L e-tron, whose wheelbase was extended by 132 millimeters to accommodate a battery with a gross capacity of up to 107 kilowatt-hours. The car's stated maximum range is 815 kilometers under the CLTC standard. Audi China President Johannes Roscheck said the company had recently surpassed 10 million customers in China, linking the fulfillment of customer expectations to adapting the local model lineup. On economic indicators, China's official manufacturing PMI stood at 50.1 points in September, up 0.3 percentage points from the previous month and entering expansion territory. China's National Bureau of Statistics scheduled the release of its October PMI report for October 31, 2026, at 9:30.
Audi's financial calendar shows that third-quarter 2026 results are scheduled for October 30. The date follows the forecast revision the company announced in July, while the annual cash flow range remains unchanged. China has also scheduled the release of its October Purchasing Managers' Index report for the following day, October 31, at 9:30. The upcoming quarterly results will provide an update on the group's performance after a first half that combined lower revenue with higher operating profit and cash flow. Pressure in the Chinese market and escalation in the Middle East remain among the factors Audi cited when presenting its revised outlook.