Autoliv Q3 2026: Eight-Quarter Beat Streak Ends on Cost Squeeze

Autoliv's adjusted EPS of $2.19 for Q3 2026 came in missing expectations, with revenue also below expectations and slightly lower than a year earlier. That snapped a streak of eight consecutive quarters of beating analyst forecasts on the bottom line.

Cost pressures behind the miss were broad-based: raw materials carried a gross headwind of roughly $42 million, logistics costs rose, and the period lacked the supplier settlement benefit that had supported results a year ago. Flooding in Thailand and a higher effective tax rate following the closure of tax audits weighed on net income, which fell year over year.

Asia Pacific revenue grew, led by India sales up organically 29% on stronger safety content per vehicle and higher organic sales to Chinese OEMs, who now supply a majority of Autoliv's China revenue. The company also opened a second R&D center in China during the quarter to support those expanding partnerships.

In response to the widening cost headwinds, management narrowed its full-year adjusted operating margin guidance to around 10.5%, the low end of its prior range of 10.5% to 11%. CEO Mikael Bratt acknowledged that raw materials, logistics, Thailand flooding, and lower call-off accuracy have all intensified throughout the year, though he noted the company has offset the majority through labor efficiency, material savings, and customer and supplier negotiations.

Looking to the fourth quarter, Bratt said the company anticipates a strong finish, citing an increasing number of product launches and significant raw material recoveries. Full-year guidance otherwise holds at around 0% organic sales growth, though management flagged that geopolitical developments, tariffs, and trade restrictions remain meaningful sources of uncertainty.