Audi lowers 2026 revenue forecast to 55 billion to 59 billion euros

Nine-month operating profit falls to 1.15 billion euros as revenue drops 13%

Audi cut its full-year revenue guidance on Friday and said it will intensify measures aimed at boosting competitiveness, warning that market conditions have worsened. The automaker, part of Volkswagen Group, now expects revenue of 55 billion to 59 billion euros for 2026, down from previous guidance of 58 billion to 63 billion euros.

“We are taking the current economic situation as a mandate to consistently renew Audi,” Chief Executive Gernot Doellner said. “To this end, we are setting clear priorities: reducing costs while increasing quality and productivity.”

In a statement Friday, Audi said costs and complexity are being further reduced, efficiency is being boosted significantly across its entire footprint, and investments are being targeted toward future areas of growth, including new products, technologies such as software, artificial intelligence, and driver-assistance systems, and growth markets.

The company said it has seen a noticeable decline in vehicle deliveries, revenue, and operating profit in the first nine months of the year. Operating profit for the period totaled 1.15 billion euros, down from 1.56 billion euros a year earlier, as revenue fell 13% to 42.06 billion euros. Audi logged an operating margin of 2.7%, down from 3.2%, and net cash flow of 2.44 billion euros.

For the full year, the Audi group — which comprises the Audi, Bentley, Lamborghini, and Ducati brands — now sees an operating margin of between 3% and 5%, from 5% to 7% previously, and projects net cash flow of 2.5 billion to 3.5 billion euros, from 3 billion to 4 billion euros.

Audi said it is grappling with a market downturn in China, intensifying competition, and growing pressure from Chinese brands in Europe. The transition to electric vehicles in Europe is adding competitive and transformational pressures, while higher energy costs due to the Middle East conflict, U.S. tariffs, and the brand’s shift to a new entry-level lineup are also weighing on results, it said.

Audi has been working to cut costs and become more efficient, and it said Friday it will go further. The company last year closed its Brussels plant and outlined plans to cut up to 7,500 jobs over the next few years while taking measures to increase productivity, speed, and flexibility at its German sites. It has been targeting more than 1 billion euros ($1.12 billion) of savings a year in the medium term to counter headwinds from U.S. tariffs and intense competition in China.

Audi has also undertaken a model refresh, launched its China-exclusive AUDI brand, and plans new cars tailored to its core markets. A few days ago, it announced plans to establish its first U.S. production site, investing $4 billion in a plant designed to produce up to 200,000 vehicles a year from the 2030s, part of a plan to spur growth in the country with a locally made premium SUV tailored to North American customers.

The company said further measures are to be developed to ensure the long-term competitiveness and employment of its German sites, and that they will be discussed with labor representatives.

“There is an urgent need for action at Audi,” Chief Financial Officer Juergen Rittersberger said. “The environment became significantly more challenging, particularly in the third quarter. Our measures are having an effect, but given the immense competitive pressure, we must intensify them.”