Mercedes-Benz stock faces lower Cars outlook as China weighs
Published on 11/04/2026 at 17:32 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSMercedes-Benz Outlook Remains Under Pressure
- Mercedes-Benz Cars lowered its 2026 adjusted return-on-sales outlook to 2% to 3%.
- Quarterly battery-electric vehicle sales reached a record, while China remained a major drag on Cars performance.
- Vans and Financial Services continued to support group earnings.
Mercedes-Benz Group AG updated its 2026 outlook after a mixed third quarter in which China weighed on the Cars division while electric models, Vans and Financial Services provided support. The company published the results and outlook update on Wednesday, October 28, 2026.
In its Mercedes-Benz Media release, the group said Mercedes-Benz Cars now expects an adjusted return on sales of 2% to 3% for 2026, compared with the previous range of 3% to 5%. Group EBIT is now expected at the prior-year level, while industrial free cash flow is expected to be significantly below the prior-year level.
China Pressure Meets Electric Momentum
Mercedes-Benz Cars sold 407,232 vehicles in the third quarter, down 8% from the prior-year period. The company attributed the decline mainly to challenging market conditions and intense competition in China.
The electric portfolio offered a clear counterpoint. Battery-electric vehicle sales at Mercedes-Benz Cars rose 61% year on year to a quarterly record, lifting the global BEV share to 16.8%. In Europe, order books for key new electric models extend well into 2027, according to the company.
Vans And Finance Cushion Cars
Mercedes-Benz Vans generated adjusted third-quarter EBIT of 397 million euros and an adjusted return on sales of 9.4%. Mercedes-Benz Financial Services increased adjusted EBIT by 42% to 445 million euros, supported by portfolio margins, lower credit-risk costs and disciplined spending.
The revised outlook leaves China as the central earnings risk for the passenger-car business. Investors will focus on whether product launches can sustain growth outside China while the group protects margins in a more competitive market.
The Mercedes-Benz stock snapshot provides the latest company and market information.
Market conditions for German equities can be followed through the DAX market overview.
More news and analyses on Mercedes-Benz stock are available on the Mercedes-Benz stock topic page.
Mercedes-Benz Group AG
- Company: Mercedes-Benz Group AG
- ISIN: DE0007100000
- Third-quarter event date: October 28, 2026
- 2026 Cars adjusted return-on-sales outlook: 2% to 3%
- Q3 Cars battery-electric vehicle sales: Up 61% year on year to a quarterly record
- Q3 Financial Services adjusted EBIT: 445 million euros
