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

Key Points

• Zacks Research slightly raised BorgWarner’s Q3 2026 EPS estimate to $1.27 from $1.26, and now sees full-year 2026 earnings of about $5.15 per share.
• BorgWarner beat expectations in its latest quarter, reporting EPS of $1.24 versus the $1.16 consensus and revenue of $3.53 billion versus $3.50 billion estimated. The company also reaffirmed FY2026 guidance of $5.00 to $5.20 EPS.
• Analyst sentiment remains mixed but generally positive, with the stock carrying a “Moderate Buy” rating and an average price target of $68.14. The shares were also noted as up 3.7% in the session, trading near their 1-year high.

BorgWarner Inc. (NYSE:BWA - Free Report) - Investment analysts at Zacks Research raised their Q3 2026 earnings per share estimates for shares of BorgWarner in a research report issued to clients and investors on Wednesday, May 27th. Zacks Research analyst Team now forecasts that the auto parts company will post earnings per share of $1.27 for the quarter, up from their prior forecast of $1.26. The consensus estimate for BorgWarner's current full-year earnings is $5.16 per share. Zacks Research also issued estimates for BorgWarner's Q4 2026 earnings at $1.39 EPS, FY2026 earnings at $5.15 EPS, Q1 2027 earnings at $1.34 EPS, Q2 2027 earnings at $1.44 EPS, Q3 2027 earnings at $1.42 EPS, Q4 2027 earnings at $1.48 EPS, FY2027 earnings at $5.68 EPS, Q1 2028 earnings at $1.42 EPS and FY2028 earnings at $6.00 EPS.

BorgWarner (NYSE:BWA - Get Free Report) last released its quarterly earnings results on Wednesday, May 6th. The auto parts company reported $1.24 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.16 by $0.08. The firm had revenue of $3.53 billion for the quarter, compared to the consensus estimate of $3.50 billion. BorgWarner had a return on equity of 18.36% and a net margin of 2.53%.The firm's quarterly revenue was up .5% compared to the same quarter last year. During the same quarter last year, the business posted $1.11 EPS. BorgWarner has set its FY 2026 guidance at 5.000-5.200 EPS.

Several other equities analysts have also commented on BWA. Bank of America started coverage on BorgWarner in a research note on Wednesday, March 4th. They issued a "neutral" rating for the company. Deutsche Bank Aktiengesellschaft set a $81.00 price target on BorgWarner in a research report on Tuesday, April 21st. JPMorgan Chase & Co. boosted their price target on BorgWarner from $73.00 to $75.00 and gave the company an "overweight" rating in a research report on Thursday, May 14th. Barclays upped their target price on BorgWarner from $70.00 to $75.00 and gave the stock an "overweight" rating in a research report on Thursday, May 7th. Finally, UBS Group upped their target price on BorgWarner from $56.00 to $61.00 and gave the stock a "neutral" rating in a research report on Thursday, May 7th. Seven equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $68.14.

BorgWarner Stock Up 3.7%

BorgWarner stock opened at $70.81 on Thursday. The stock's 50 day moving average price is $57.38 and its 200 day moving average price is $51.92. The company has a market cap of $14.52 billion, a PE ratio of 41.90, a price-to-earnings-growth ratio of 1.31 and a beta of 1.00. BorgWarner has a 1-year low of $31.83 and a 1-year high of $71.57. The company has a debt-to-equity ratio of 0.69, a current ratio of 2.13 and a quick ratio of 1.75.

Institutional Trading of BorgWarner

Several institutional investors and hedge funds have recently bought and sold shares of BWA. Inspire Investing LLC raised its position in shares of BorgWarner by 2.8% during the 4th quarter. Inspire Investing LLC now owns 7,223 shares of the auto parts company's stock worth $325,000 after purchasing an additional 195 shares during the period. Lazard Asset Management LLC boosted its stake in BorgWarner by 1.0% during the 4th quarter. Lazard Asset Management LLC now owns 21,719 shares of the auto parts company's stock valued at $979,000 after purchasing an additional 206 shares in the last quarter. Arjuna Capital boosted its stake in shares of BorgWarner by 0.6% during the 4th quarter. Arjuna Capital now owns 34,932 shares of the auto parts company's stock worth $1,574,000 after acquiring an additional 215 shares in the last quarter. Fifth Third Wealth Advisors LLC boosted its stake in shares of BorgWarner by 3.2% during the 1st quarter. Fifth Third Wealth Advisors LLC now owns 7,064 shares of the auto parts company's stock worth $383,000 after acquiring an additional 216 shares in the last quarter. Finally, Ariadne Wealth Management LP boosted its position in shares of BorgWarner by 3.8% in the first quarter. Ariadne Wealth Management LP now owns 5,958 shares of the auto parts company's stock worth $323,000 after buying an additional 218 shares during the period. Institutional investors and hedge funds own 95.67% of the company's stock.

Insider Activity

In other BorgWarner news, CEO Joseph F. Fadool sold 29,000 shares of the company's stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $67.31, for a total transaction of $1,951,990.00. Following the sale, the chief executive officer owned 405,964 shares in the company, valued at $27,325,436.84. This represents a 6.67% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, VP Isabelle Mckenzie sold 3,500 shares of the company's stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $63.35, for a total value of $221,725.00. Following the sale, the vice president owned 57,828 shares in the company, valued at $3,663,403.80. The trade was a 5.71% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 96,033 shares of company stock valued at $5,792,558 over the last three months. Company insiders own 0.76% of the company's stock.

BorgWarner Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, June 15th. Shareholders of record on Monday, June 1st will be paid a dividend of $0.17 per share. The ex-dividend date is Monday, June 1st. This represents a $0.68 annualized dividend and a yield of 1.0%. BorgWarner's dividend payout ratio is presently 40.24%.

BorgWarner Company Profile

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.