Volkswagen Group Q1-Q3 2026 results: Revenue holds steady, but profits come under pressure

Volkswagen Group's revenue held broadly steady in the first nine months of 2026, but operating profit fell sharply as the carmaker faced restructuring costs, accounting impairments and mounting pressure across global markets.

Revenue dips

The German automotive group reported revenue of €233.4 billion for the period, down 2.2% from €238.7 billion a year earlier. Global vehicle sales also fell, declining 11% year on year to 5.9 million units.

Volkswagen Group recorded an operating result of just €71 million in the first three quarters, compared with €5.4 billion in the same period last year.

The sharp decline was largely due to €8.7 billion in special items recognised during the reporting period. These included around €6.4 billion in non-cash goodwill impairment charges at Porsche, as well as non-cash asset adjustments related to certain joint ventures in China.

Excluding these one-off items, the group reported an operating result of €8.8 billion, with an operating return on sales of 3.8%.

EV orders continue to grow in Europe

Despite the pressure on earnings, Volkswagen Group continued to see demand for electric vehicles strengthen in Europe.

New vehicle orders in Europe rose by around 4% year on year in the first nine months of 2026, with battery electric vehicle (BEV) orders jumping 39%.

BEVs now account for 40% of the group's order backlog in Europe, which stands at around 1.1 million vehicles. The upcoming Electric Urban Car Family, which has yet to enter large-scale deliveries, has already attracted more than 150,000 orders.

Volkswagen Group Chief Financial Officer and Chief Operating Officer Arno Antlitz said the growing acceptance of EVs was encouraging, but their average profitability remained below that of conventional petrol and diesel models. The faster shift towards electrification is therefore putting short-term pressure on the group's overall earnings.

The group is also facing headwinds from US tariffs, changing market conditions in China and intensifying competition in Europe.

Automotive net cash flow rises 145%

While profits came under pressure, Volkswagen Group's automotive business generated stronger cash flow.

Net cash flow rose 145% year on year to €4.4 billion in the first nine months, up from €1.8 billion a year earlier. The improvement was supported by tighter control of capital expenditure and portfolio optimisation.

As of 30 September, net liquidity in the automotive division stood at €33 billion.

The group is also pressing ahead with its €31 billion Future Plan, a restructuring and cost-cutting programme aimed at improving long-term profitability and strengthening its position in an increasingly competitive market.

Key measures include streamlining the model line-up, simplifying the organisational structure, reducing administrative and production costs, and accelerating the development of next-generation electric and intelligent vehicle technologies.

2026 Outlook

Volkswagen Group has left its full-year 2026 forecast unchanged. It expects revenue of around €315 billion and an operating return on sales of up to 1%.

For the automotive division, net cash flow is forecast to reach €3 billion to €6 billion, while net liquidity is expected to remain between €32 billion and €34 billion.

The group said it would continue to focus on disciplined financial and liquidity management as it works to navigate current market pressures and support the long-term sustainability of its business.