Volkswagen Cuts Profit Forecast for 2026 Amid Porsche Write-Downs
Volkswagen has significantly reduced its full-year profit outlook for 2026, citing €10 billion in one-time charges primarily from its Porsche division. The automaker now expects an operating return on sales of up to 1%, down sharply from the previous target range of 4% to 5.5%. Revenue is also projected to decline slightly to around €315 billion for the year, compared to €321.9 billion in 2025. The charges are largely attributed to revised mid-term assumptions at Porsche, where Volkswagen holds a 75.4% stake and which has been impacted by U.S. tariffs and declining demand in China's luxury vehicle market. Additional impairments of €2 billion will be booked due to restructuring costs and plant closures. The company also warned that ongoing challenges such as the shrinking Chinese auto market and rising electric vehicle sales could further pressure results. Volkswagen shares fell 5.6% following the announcement, with Porsche SE and Porsche shares declining by nearly 4%. Finance chief Arno Antlitz emphasized urgency in addressing these issues amid a broader restructuring plan that includes cutting up to 100,000 jobs.
