Zacks Research Estimates BorgWarner's Q3 Earnings (NYSE:BWA)

Key Points

• Zacks cut BorgWarner’s Q3 2026 EPS estimate to $1.22 from $1.27, while projecting $5.19 EPS for FY2026 and $5.82 for FY2027.
• BorgWarner recently beat quarterly expectations, reporting $1.42 EPS versus the $1.28 consensus and $3.65 billion in revenue versus estimates of $3.58 billion. The company maintained FY2026 guidance of $5.05–$5.30 EPS.
• The board authorized a $1 billion share buyback, equivalent to up to 7.7% of outstanding shares, and the company declared a quarterly dividend of $0.17 per share. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $75.93.

BorgWarner Inc. (NYSE:BWA - Free Report) - Research analysts at Zacks Research dropped their Q3 2026 earnings estimates for shares of BorgWarner in a research note issued to investors on Wednesday, August 26th. Zacks Research analyst Team now forecasts that the auto parts company will earn $1.22 per share for the quarter, down from their previous estimate of $1.27. The consensus estimate for BorgWarner's current full-year earnings is $5.19 per share. Zacks Research also issued estimates for BorgWarner's Q4 2026 earnings at $1.31 EPS, FY2026 earnings at $5.19 EPS, Q1 2027 earnings at $1.35 EPS, Q2 2027 earnings at $1.47 EPS, Q3 2027 earnings at $1.48 EPS, Q4 2027 earnings at $1.51 EPS, FY2027 earnings at $5.82 EPS, Q1 2028 earnings at $1.46 EPS, Q2 2028 earnings at $1.61 EPS and FY2028 earnings at $6.35 EPS.

Several other equities research analysts also recently weighed in on BWA. Robert W. Baird set a $79.00 price target on BorgWarner in a research report on Thursday, August 6th. Sanford C. Bernstein raised BorgWarner to a "buy" rating in a report on Wednesday, June 10th. UBS Group upgraded BorgWarner from a "neutral" rating to a "buy" rating and upped their target price for the stock from $61.00 to $95.00 in a research note on Wednesday, June 10th. Wolfe Research reaffirmed an "outperform" rating and set a $95.00 target price on shares of BorgWarner in a report on Wednesday, June 3rd. Finally, Deutsche Bank Aktiengesellschaft set a $80.00 price target on BorgWarner in a research report on Thursday, August 6th. Nine analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $75.93.

BorgWarner Trading Down 0.7%

Shares of BorgWarner stock opened at $64.66 on Thursday. The company has a debt-to-equity ratio of 0.67, a current ratio of 2.13 and a quick ratio of 1.76. The firm has a fifty day moving average price of $65.89 and a 200 day moving average price of $61.97. BorgWarner has a 1 year low of $40.50 and a 1 year high of $78.82. The stock has a market cap of $13.17 billion, a PE ratio of 32.33, a price-to-earnings-growth ratio of 1.17 and a beta of 1.10.

BorgWarner (NYSE:BWA - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The auto parts company reported $1.42 EPS for the quarter, beating the consensus estimate of $1.28 by $0.14. The business had revenue of $3.65 billion during the quarter, compared to analysts' expectations of $3.58 billion. BorgWarner had a net margin of 2.89% and a return on equity of 19.10%. The business's quarterly revenue was up .3% compared to the same quarter last year. During the same period in the previous year, the business posted $1.21 EPS. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS.

BorgWarner declared that its board has approved a share buyback plan on Wednesday, August 5th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the auto parts company to reacquire up to 7.7% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company's leadership believes its stock is undervalued.

BorgWarner Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st will be given a dividend of $0.17 per share. The ex-dividend date is Tuesday, September 1st. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.1%. BorgWarner's dividend payout ratio (DPR) is 34.00%.

Insider Activity

In related news, Director Rajesh Kalathur purchased 7,407 shares of the company's stock in a transaction that occurred on Wednesday, August 19th. The shares were purchased at an average price of $67.59 per share, with a total value of $500,639.13. Following the purchase, the director owned 7,407 shares of the company's stock, valued at $500,639.13. The trade was a ∞ increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CAO Amy B. Kulikowski sold 2,900 shares of the business's stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $68.60, for a total transaction of $198,940.00. Following the completion of the sale, the chief accounting officer directly owned 9,725 shares of the company's stock, valued at approximately $667,135. The trade was a 22.97% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.76% of the stock is owned by insiders.

Institutional Trading of BorgWarner

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Inspire Investing LLC lifted its position in shares of BorgWarner by 2.8% in the fourth quarter. Inspire Investing LLC now owns 7,223 shares of the auto parts company's stock worth $325,000 after buying an additional 195 shares during the last quarter. Greenleaf Trust raised its stake in shares of BorgWarner by 5.2% in the 2nd quarter. Greenleaf Trust now owns 3,977 shares of the auto parts company's stock valued at $264,000 after acquiring an additional 196 shares in the last quarter. Lazard Asset Management LLC lifted its holdings in BorgWarner by 1.0% in the 4th quarter. Lazard Asset Management LLC now owns 21,719 shares of the auto parts company's stock worth $979,000 after purchasing an additional 206 shares during the last quarter. Arjuna Capital lifted its holdings in BorgWarner by 0.6% in the 4th quarter. Arjuna Capital now owns 34,932 shares of the auto parts company's stock worth $1,574,000 after purchasing an additional 215 shares during the last quarter. Finally, Fifth Third Wealth Advisors LLC boosted its position in BorgWarner by 3.2% during the first quarter. Fifth Third Wealth Advisors LLC now owns 7,064 shares of the auto parts company's stock worth $383,000 after purchasing an additional 216 shares during the period. Hedge funds and other institutional investors own 95.67% of the company's stock.

Key BorgWarner News

Here are the key news stories impacting BorgWarner this week:

• Positive Sentiment: Zacks raised its FY2026 EPS forecast to $5.19 from $5.15, matching the broader consensus estimate. Longer-term expectations also improved, with FY2027 EPS increasing to $5.82 from $5.68 and FY2028 EPS rising to $6.35 from $6.00. BorgWarner analyst estimates
• Positive Sentiment: The analyst lifted estimates for several future quarters, including Q1 2027 EPS to $1.35 from $1.34, Q2 2027 EPS to $1.47 from $1.44, Q3 2027 EPS to $1.48 from $1.42, Q4 2027 EPS to $1.51 from $1.48, Q1 2028 EPS to $1.46 from $1.42, and Q2 2028 EPS to $1.61 from $1.50. These changes suggest improved longer-term earnings prospects.
• Neutral Sentiment: The revisions do not change the current full-year consensus of $5.19 EPS, while the stock’s valuation remains relatively demanding at roughly 32 times earnings. Investors may therefore look for stronger near-term results or guidance before assigning additional upside.
• Negative Sentiment: Zacks reduced its Q3 2026 EPS forecast to $1.22 from $1.27 and its Q4 2026 forecast to $1.31 from $1.39. The cuts indicate softer near-term earnings expectations and likely help explain the pressure on BWA despite the more constructive outlook for 2027 and 2028.

About BorgWarner

BorgWarner Inc is a global automotive supplier specializing in propulsion and drivetrain solutions for combustion, hybrid and electric vehicles. The company's product portfolio includes turbochargers, thermal management systems, transmission components, e-Propulsion modules and advanced fuel-efficiency technologies. BorgWarner serves original equipment manufacturers (OEMs) across passenger cars, light trucks and commercial vehicles, supporting both legacy internal-combustion engines and emerging electrification trends.

Founded in 1928 through the merger of several driveline companies, BorgWarner has grown through strategic acquisitions and continuous investment in research and development.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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