Lear Q3 2026: EPS Beats Estimates as Buybacks Shrink the Share Count
As seen on the 24/7 Wall St. homepage on October 30, 2026.
Lear grew 4 percentage points over a declining market, beating EPS expectations while revenue came in just under estimates. Buybacks are shrinking the base: diluted share count fell to 49.9 million from 53.7 million, with $1.5 billion authorized through 2029.
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Lear's adjusted earnings of $3.71 per share beat the consensus estimate even as global vehicle production fell, with growth over the declining market driven by new business, commercial recoveries, and restructuring savings that lifted core operating margins.
Revenue of $5.77 billion came in just under what analysts expected, missing expectations by less than 1% while still rising from the same quarter last year, with Seating supplying the bulk of the total and North America the largest region.
Diluted shares outstanding fell to 49.9 million as Lear hit its full-year buyback target ahead of schedule. The company then expanded its repurchase authorization to $1.5 billion through December 31, 2029, signaling sustained capital return regardless of the production environment.
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Free cash flow softened as capital expenditures rose, largely tied to the new complete seat facility in Orion, Michigan, which is on track to launch early next year. CEO Ray Scott cited wins including the largest complete seat award in India with Mahindra and Mahindra, new programs with BYD in Indonesia and Thailand, and awards with a Chinese luxury EV automaker.
Lear trimmed its full-year net sales outlook to reflect shifting production schedules on key platforms while holding its core operating earnings and free cash flow guidance. That guidance excludes future tariff changes and production disruptions, two live risks given the North American and Chinese volume headwinds already showing up in Q3.
Sources
Mentioned: LEA