Ford stock surges higher after CEO reveals the old recipe works best

While much of the global auto industry has been obsessed with electric vehicles, Ford has quietly discovered that its oldest recipe is still its most profitable business.

Demand for the company’s legendary pickup trucks and rugged SUVs helped send shares soaring on Tuesday after the carmaker beat Wall Street expectations and raised its earnings forecast for the second time this year.

Shares climbed more than five percent after the company revealed it now expects adjusted earnings before interest and taxes of between $10 billion and $11 billion for 2026, up from its previous guidance of $8.5 billion to $10.5 billion.

The upbeat forecast comes despite a challenging year for the company, which has battled supply chain disruptions, multiple recalls, tariff costs and slowing electric vehicle demand.

Instead, Ford is increasingly leaning into what it does best: high-margin trucks, off-road vehicles and hybrids.

‘Our iconic trucks, off-roaders and hybrids are commanding real pricing power,’ Ford CEO Jim Farley said in a statement accompanying the results.

He added that the latest quarter showed ‘growing evidence that Ford is becoming a more profitable, more disciplined and genuinely different company.’

The strategy appears to be paying off.

Demand for the Ford’s legendary pickup trucks and rugged SUVs helped send shares soaring on Tuesday

Sales of Ford’s traditional gasoline-powered vehicles rose one percent during the quarter, with premium off-road truck and SUV trims accounting for nearly one in four US vehicle sales.

Those more expensive models helped offset weaker volumes elsewhere in the business and demonstrate that many buyers remain willing to spend on larger vehicles despite high borrowing costs and inflation.

Ford CFO Sherry House said the company’s customer base has remained remarkably resilient.

‘Our industrial system is getting fitter,’ House told reporters, adding that customers were resilient despite broader economic uncertainty.

She highlighted that Ford continues to benefit from demand among higher-income consumers.

‘Our Ford consumer has been very resilient, despite inflation, despite what we’re seeing in interest rates,’ House said during the company’s earnings call.

The performance mirrors a broader trend across Detroit’s biggest automakers.

Last week, rival General Motors also beat earnings expectations and raised its annual guidance, suggesting affluent truck buyers continue to support profits even as the wider US auto market cools.

Shares climbed more than five percent after the company revealed it now expects adjusted earnings before interest and taxes of between $10 billion and $11 billion for 2026, up from its previous guidance of $8.5 billion to $10.5 billion

‘Our iconic trucks, off-roaders and hybrids are commanding real pricing power,’ Ford CEO Jim Farley said in a statement accompanying the results

Ford’s second-quarter revenue slipped four percent year-over-year to $48.3 billion, largely because of lower wholesale deliveries caused by aluminum supply shortages and reduced electric vehicle shipments.

Adjusted earnings came in at 42 cents per share, comfortably ahead of analysts’ expectations of around 35 to 36 cents.

The company nevertheless reported a net loss of $1.3 billion, largely due to a $3.6 billion accounting charge linked to dissolving its battery joint venture with South Korean manufacturer SK On rather than weakness in its core business.

Ford’s electric vehicle division continues to struggle. Revenue in the EV and software unit fell sharply as EV sales dropped more than 56 percent from a year earlier, with the business losing $919 million during the quarter.

However, rather than chasing volume at any cost, executives say Ford is becoming more selective about where it invests.

‘We play only where we have real compeтιтive advantage, or we can build one, and we’re ruthless about where we put our money,’ Farley told analysts.

‘Every dollar must earn durable returns and drive profitable growth.’

The company is continuing with plans to launch a new $30,000 electric pickup truck in 2027, which executives hope will become the foundation for a new generation of more affordable EVs.

Sales of Ford’s traditional gasoline-powered vehicles rose one percent during the quarter, with premium off-road truck and SUV trims accounting for nearly one in four US vehicle sales

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Ford is also finding new ways to diversify beyond traditional car sales.

Earlier this summer it launched Ford Energy, a business focused on stationary battery storage systems for artificial intelligence data centers and power utilities using EV battery technology.

The company also recently announced a manufacturing partnership with Chinese automaker Geely at its Valencia, Spain, factory, allowing Ford to continue producing hybrid models while jointly developing future vehicles.

At the same time, Ford is expanding ways for customers to personalize their vehicles, recently introducing a program that lets buyers custom-build their own Broncos. 

Despite first-half US vehicle sales falling nearly ten percent after production was disrupted by a fire at aluminum supplier Novelis and the discontinuation of several models, executives remain optimistic.

The automaker expects production to normalize as aluminum supplies recover and believes demand for its core truck lineup remains strong enough to offset broader industry weakness.

Ford’s improved outlook also suggests tariff costs may prove less severe than initially feared.

The company previously warned tariffs could cost around $1 billion this year, but House said those costs are now expected to come in slightly lower.

The latest results continue a remarkable turnaround in investor sentiment.

Ford shares have now risen roughly 14 percent this year, outperforming the broader market as investors increasingly reward the company’s focus on profitable trucks, disciplined spending and expansion into battery energy storage alongside its traditional automotive business.

While electric vehicle losses remain a significant challenge, Tuesday’s results suggest Ford’s decades-old formula of selling America’s favorite pickups is still generating enough cash to fund its transformation for the years ahead.