| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 94 | 12.2x | 17.8x | Top tier | |
Growth | 45 | 3.5% | 7.1% | Around median | |
Quality | 52 | 8.3% | 4.5% | Around median | |
Safety | 67 | 1.7x | 2.6x | Top tier | |
Capital Return | 80 | 2.39% | 2.12% | Top tier | |
Momentum | 62 | 10.6% | 2.9% | Around median | |
Sentiment | 43 | 10 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Lear Corporation is an automotive supplier that generates revenue through two main segments: Seating, which provides complete seats and thermal comfort solutions such as ComfortFlex, ComfortMax, and FlexAir, and E-Systems, which provides wiring harnesses, connection systems, and electronic products. In Q2 fiscal 2026, Seating generated revenue of $4.6 billion, representing approximately 74% of the company's revenue, compared with $1.6 billion, or approximately 26%, for E-Systems.
In Q2 fiscal 2026, Lear's revenue increased 3% year over year to $6.2 billion, while gross profit according to EDGAR data was approximately $470.3 million, with a gross margin of approximately 7.6%. Net income was $192.8 million, with a net margin of approximately 3.1%, and earnings per share according to EDGAR reached $3.79, while adjusted earnings per share presented by management were $4.28, an increase of 23% year over year.
Core operating earnings were $313 million in Q2 fiscal 2026, an increase of 7%, while operating cash flow rose 55% to $461 million and free cash flow increased 69% to $288 million. At the segment level, Seating recorded an adjusted operating margin of 6.7%, unchanged year over year, while E-Systems' margin improved from 4.9% to 5.8% due to improved net operating performance. Fiscal 2025 revenue was approximately $23.3 billion, net income was $436.8 million, and earnings per share were $8.15.
The analyst consensus on LEA is "Neutral," with an average price target of $138.67, within a range of $130 to $155. The average target is approximately 7.8% below the 52-week range high of $150.33, while the highest target exceeds that high by approximately 3.1%; this divergence reflects analysts balancing improved earnings, cash flows, and backlog on one side against weakness in China and the limited growth expected in fiscal 2027 on the other.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Revenue increased 3% to $6.2 billion, driven by new Seating business including Xiaomi M6, M7, BMW iX3, and Jeep Cherokee. Core operating earnings were $313 million, an increase of 7%, while adjusted earnings per share rose 23% to $4.28. Operating cash flow also increased to $461 million and free cash flow to $288 million due to higher earnings and improvements in working capital and inventory.
Seating generated revenue of $4.6 billion in Q2 fiscal 2026, representing approximately 74% of Lear's total revenue, and recorded an adjusted operating margin of 6.7%. E-Systems generated revenue of $1.6 billion, representing approximately 26% of the total, with a margin of 5.8%. E-Systems' margin improved from 4.9% in Q2 fiscal 2025, while Seating's margin remained stable year over year.
On July 31, 2026, the company raised the midpoint of its revenue outlook to approximately $23.8 billion, compared with approximately $23.6 billion in the previous outlook. It also raised its core operating earnings outlook to $1.14 billion, with a margin of 4.8%, and projected operating cash flow of approximately $1.3 billion. The midpoint of the free cash flow outlook was $640 million, an increase of $40 million from the previous outlook.
Automated analysis for informational purposes only — not investment advice.
Domestic vehicle sales in China declined 20% during the first half of fiscal 2026, while vehicle production there fell 4% in Q2. Chinese automakers accounted for 44% of Lear's revenue in China, and management expects the percentage to reach 50% or more in fiscal 2027. The company has won $550 million in new business with Chinese automakers since the beginning of fiscal 2026, but it also said that its presence in programs exported from China remains below the targeted level.
The Idea by Lear initiative is targeting $75 million in savings in fiscal 2026 after generating approximately $35 million in the first half. The company has more than 200 automated sewing cells that reduce labor in their applications by 50%, in addition to more than 50 seat-preparation cells and more than 40 end-of-line testing cells that generate combined annual savings of $14 million. In-house equipment manufacturing capabilities have also reduced equipment costs by 20% or more. Management is targeting a net improvement of 40 basis points in Seating and 80 basis points in E-Systems in each of fiscal 2026 and 2027.
Management said growth in fiscal 2027 would be limited despite a backlog exceeding $700 million because the discontinuation of non-core electronic products will reduce revenue by approximately $235 million that year. It also expects pressure from volumes on the JLR, Ford Explorer, and Jeep Grand Wagoneer platforms, and from flat volumes in GM full-size programs during the model changeover. The company expects growth to accelerate thereafter, with a return to above-market growth in 2028 and the impact of a large number of new awards peaking in 2029.
