Lear (NYSE:LEA) Releases Quarterly Earnings Results, Beats Expectations By $0.36 EPS

Lear (NYSE:LEA) released its quarterly earnings results on Friday. The auto parts company reported $3.87 EPS for the quarter, topping the consensus estimate of $3.51 by $0.36, Briefing.com reports. Lear had a return on equity of 13.40% and a net margin of 1.88%.The business had revenue of $5.82 billion during the quarter, compared to analysts’ expectations of $5.84 billion. During the same quarter in the prior year, the business earned $3.12 earnings per share. The company’s quarterly revenue was up 4.7% compared to the same quarter last year.

Here are the key takeaways from Lear’s conference call:

• Lear reported a strong quarter with sales up 5% to $5.8B, core operating earnings up 10%, and adjusted EPS of $3.87 (up 24%), alongside improved operating cash flow and $75M of share repurchases in Q1.
• Significant commercial wins broadened the backlog — including a GM full?size SUV wire harness award, power distribution/module wins (and an Audi high?voltage PDU), plus large China seating and harness awards that increased the two?year backlog by about $250M (three?year impact ~ $400M).
• Recent U.S. tariff changes produced a one?time revenue reversal that reduces 2026 revenue by roughly $285M YoY (and about $385M vs. the February outlook) but management says there is no corresponding earnings impact due to passthroughs and recoveries.
• Productivity and automation under IDEA by Lear and recent acquisitions delivered ~$70M of savings in Q1 and are expected to yield ~$75M this year, supporting net?performance targets of +40 bps (Seating) and +80 bps (E?Systems).
• Management maintained full?year guidance (citing macro and geopolitical caution) while noting Q2 is trending toward the midpoint?to?high end of the range and the company remains on pace to repurchase at least $300M of stock in 2026.

Lear Trading Up 4.0%

Shares of LEA stock opened at $132.24 on Friday. The business’s fifty day moving average price is $122.88 and its 200 day moving average price is $117.87. Lear has a 1-year low of $82.88 and a 1-year high of $142.84. The firm has a market capitalization of $6.70 billion, a PE ratio of 13.22, a P/E/G ratio of 0.84 and a beta of 1.21. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.35 and a quick ratio of 1.05.

Lear Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, March 25th. Investors of record on Thursday, March 5th were issued a dividend of $0.77 per share. This represents a $3.08 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date of this dividend was Thursday, March 5th. Lear’s dividend payout ratio is currently 30.80%.

Insiders Place Their Bets

In related news, CFO Jason M. Cardew sold 10,000 shares of the company’s stock in a transaction on Thursday, February 19th. The stock was sold at an average price of $134.51, for a total transaction of $1,345,100.00. Following the transaction, the chief financial officer owned 22,741 shares of the company’s stock, valued at $3,058,891.91. This represents a 30.54% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, SVP Alicia J. Davis sold 6,630 shares of the company’s stock in a transaction on Thursday, February 19th. The shares were sold at an average price of $132.98, for a total value of $881,657.40. Following the completion of the sale, the senior vice president directly owned 9,972 shares in the company, valued at $1,326,076.56. This trade represents a 39.93% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 25,264 shares of company stock worth $3,400,687. Insiders own 1.02% of the company’s stock.

Institutional Trading of Lear

Large investors have recently bought and sold shares of the company. Parallel Advisors LLC grew its holdings in Lear by 36.3% in the fourth quarter. Parallel Advisors LLC now owns 1,285 shares of the auto parts company’s stock valued at $147,000 after purchasing an additional 342 shares during the last quarter. CIBC Private Wealth Group LLC grew its holdings in Lear by 60.9% in the third quarter. CIBC Private Wealth Group LLC now owns 1,305 shares of the auto parts company’s stock valued at $131,000 after purchasing an additional 494 shares during the last quarter. EverSource Wealth Advisors LLC grew its holdings in Lear by 37.1% in the second quarter. EverSource Wealth Advisors LLC now owns 968 shares of the auto parts company’s stock valued at $92,000 after purchasing an additional 262 shares during the last quarter. Smartleaf Asset Management LLC grew its holdings in Lear by 27.3% in the fourth quarter. Smartleaf Asset Management LLC now owns 789 shares of the auto parts company’s stock valued at $92,000 after purchasing an additional 169 shares during the last quarter. Finally, Atlas Capital Advisors Inc. acquired a new stake in Lear in the fourth quarter valued at $83,000. Institutional investors and hedge funds own 97.04% of the company’s stock.

Analysts Set New Price Targets

Several equities research analysts have recently commented on LEA shares. Royal Bank Of Canada started coverage on Lear in a research note on Thursday, March 12th. They set a “sector perform” rating and a $135.00 price target for the company. Morgan Stanley upped their price target on Lear from $112.00 to $123.00 and gave the stock an “equal weight” rating in a research note on Thursday, February 5th. Barclays set a $140.00 price target on Lear in a research note on Thursday, February 5th. Weiss Ratings restated a “hold (c)” rating on shares of Lear in a research note on Thursday, January 22nd. Finally, TD Cowen cut their price target on Lear from $133.00 to $132.00 and set a “hold” rating for the company in a research note on Wednesday, April 15th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and eleven have given a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $134.92.

Key Headlines Impacting Lear

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Q1 EPS beat and profit jump — Lear reported adjusted EPS of $3.87, topping consensus and marking its highest adjusted EPS since 2019 (and highest GAAP EPS since 2021); management cited strong demand in Seating and E?Systems driving a roughly 24% profit increase. Lear Corp Crushes Earnings: Seating, E-Systems Drive 24% Profit Jump
• Positive Sentiment: Company press release and outlook — Lear’s PR stated Q1 results were the highest EPS levels in years and the company reaffirmed its FY2026 financial outlook, which supports upside sentiment. Lear Reports First Quarter 2026 Results; The Highest EPS Since 2021 And The Highest Adjusted EPS Since 2019
• Positive Sentiment: Analyst and media confirmation — Multiple outlets (Zacks, MarketBeat) highlight the EPS beat and rising profits; at least one analyst set a $134.92 price target ahead of the print, adding support to the rally. Lear (LEA) Q1 Earnings Surpass Estimates
• Neutral Sentiment: Revenue roughly flat to estimates — Revenue rose 4.7% year-over-year to $5.82B but narrowly missed the consensus (~$5.84B), so top-line momentum is positive but not materially stronger than expected. Lear earnings release / transcript
• Negative Sentiment: Margins and net income context — Despite higher EPS, Lear’s reported net margin was modest (~1.9%), indicating profits are sensitive to mix, costs and lower industry vehicle output; this could cap enthusiasm if auto production weakens. Lear 1Q Profit, Revenue Rise Despite Lower Auto Output

Lear Company Profile

Lear Corporation (NYSE: LEA) is a global supplier of automotive seating and electrical distribution systems. The company designs, engineers and manufactures complete seat systems, seat components and power solutions for major vehicle manufacturers. Its electrical business delivers modules and components for battery management, infotainment, body and safety electronics, as well as advanced connectivity and electrification solutions.

The seating division develops lightweight, ergonomic seat structures, trim and mechanisms that address comfort, safety and environmental targets.