Mercedes-Benz stock: Q3 profit rises as China pressure cuts outlook

Published on 10/29/2026 at 17:51 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Mercedes-Benz stock is digesting a mixed third quarter after the company confirmed weaker Cars profitability in China. Vans and Financial Services provided support.

Mercedes faces pressure and support

Third-quarter revenue declined while reported EBIT benefited from easier comparisons with the prior year.
China remained the main pressure point, but Europe, the United States, Vans and Financial Services provided offsets.
Management expects fourth-quarter Cars profitability to remain below the third quarter as costs and model-cycle effects weigh.

Mercedes, DE0007100000, Illustration mit AI erstellt.

Mercedes-Benz reported its third-quarter 2026 results on October 28, adding detail to the preliminary figures and outlook revision issued one day earlier. The Mercedes-Benz Group investor-relations page shows group EBIT of EUR 1.77 billion and describes strong contributions from Financial Services and Vans, alongside record quarterly battery-electric vehicle deliveries.

What changed since the last report

The completed quarterly release provides a clearer split between the resilient group result and the weakness in the core car business. Revenue fell 4.5 percent year on year to EUR 30.7 billion, while adjusted group EBIT declined 15 percent to EUR 1.78 billion. The reported EBIT comparison was helped by lower restructuring and legal charges than in the prior-year quarter.

Mercedes-Benz Cars delivered adjusted EBIT of EUR 560 million and an adjusted return on sales of 2.5 percent, down from 4.8 percent a year earlier. Cars sales fell 8 percent to 407,232 vehicles, with China the main drag. Outside China, Cars sales rose 5 percent in Europe and 6 percent in the United States. Battery-electric sales increased 61 percent to a quarterly record, according to the Investing.com transcript of the earnings call.

China and the fourth-quarter test

Management said the Chinese market had deteriorated further and cited higher material costs and product-cycle measures for the lower outlook. The full-year adjusted Cars return-on-sales target is now 2 to 3 percent, compared with 3 to 5 percent previously. Chief Financial Officer Harald Wilhelm described the fourth quarter as potentially near break-even for Cars, while group EBIT is expected at the prior-year level.

Other divisions cushion the group result. Vans posted an adjusted return on sales of 9.4 percent, while Financial Services reported adjusted return on equity of 13.8 percent. Industrial free cash flow was only EUR 172 million in the quarter, as higher inventory absorbed cash, although management expects working capital to support the fourth quarter.

Share-price context

At Lang & Schwarz, the valid quote was EUR 40.75 on October 29, 2026, at 16:33 Berlin time. That is 2.31 percent above the EUR 39.83 Xetra close from October 28, as listed by Barron's Xetra market page. Since the relevant October 27 report, which recorded a Lang & Schwarz price of EUR 39.28 at 10:13 Berlin time, the quote is 3.74 percent higher. The two comparisons use different reference points and should not be conflated.

The real-time quote of Mercedes-Benz stock remains a market indicator rather than proof that the operating pressures have eased. For investors, the next test is whether the product offensive and cost measures can offset China-related weakness and the expected fourth-quarter burden.