3 Reasons Ford Looks Overlooked Ahead of Its July 28 Q2 Earnings
Ford reports Q2 earnings on July 28 carrying a combination of attributes rarely seen together in a major automaker, yet the market seems to be looking the other way. Here is what the bulls are watching heading into that report.
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Ford (NYSE:F | F Price Prediction) reports Q2 2026 earnings on July 28 with three major factors working in its favor: a 4.24% dividend yield, a valuation of roughly 4.5 times free cash flow, and recently raised full-year profit guidance.
Ford’s electric-vehicle business remains deeply unprofitable, but the company’s commercial and traditional vehicle operations continue to generate enough cash to fund the dividend and absorb those losses.
Ford Offers a 4.2% Dividend Yield
Ford’s $0.60 annualized dividend against a $14.37 share price puts the forward yield at 4.24%, more than double the S&P 500 average. General Motors (NYSE:GM) has a dividend yield of about 1% on a low-single-digit payout ratio.
The Q2 2026 dividend of $0.15 was declared April 28, 2026, and paid June 1, 2026, and management has layered in special dividends of $0.30 in February 2025 and $0.33 the year prior. Ford also repurchased $311 million of stock in Q1 2026, reinforcing the capital-return story.
Ford Trades at Just 4.5x Free Cash Flow
The stock trades at roughly 4.5x price-to-free-cash-flow, 1.5x book, and a forward P/E of 8. Free cash flow yield sits near 22%, backed by 2026 guidance for $5.0 billion to $6.0 billion in adjusted free cash flow.
Q1 2026 delivered EPS of $0.66 on $43.25 billion in revenue (6% YoY growth), with net income surging to $2.55 billion from $471 million a year earlier and adjusted EBIT improving $2.50 billion YoY to $3.49 billion.
Ford Just Raised Its 2026 Profit Forecast
Management raised full-year 2026 adjusted EBIT guidance to $8.5 billion to $10.5 billion (from $8.0 billion to $10.0 billion) on Ford Pro’s commercial and software momentum. Paid software subscriptions reached 879,000 in Q1 2026, up 30% YoY with 11.4% segment margins.
CEO Jim Farley said the results “reflect the momentum of the Ford+ plan.” Shares are up 33.85% over the last year and 12.08% year-to-date, with an average analyst price target of $15.05.
Ford’s EV Business Could Lose Another $4.5 Billion
The pushback is Model e, where losses are guided to $4.0-$4.5 billion in 2026. However, Ford Blue EBIT is guided to positive $4.5-$5.0 billion and Ford Pro EBIT to $6.5-$7.5 billion, more than absorbing the EV drag. That means the $10.70 billion in Q4 2025 Model e impairments is already accounted for.
Ford heads into its July 28 Q2 earnings report offering a rare combination of income and deep value. If Q2 results confirm that those core businesses remain strong and management maintains its higher outlook, Ford could remain one of the more attractive dividend stocks in the auto industry.
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Thomas Richmond is a financial writer and content strategist with 5+ years of experience covering stocks and financial markets. He has published over 250 articles focused on individual stock analysis, helping investors better understand business fundamentals, stock valuations, and long-term opportunities.
Thomas previously served as a Content Lead at TIKR, a stock research platform, where he helped scale the company’s blog to hundreds of articles per month and contributed to a weekly newsletter reaching more than 100,000 investors.
He specializes in breaking down complex companies into clear, actionable insights for everyday investors, with a focus on fundamentals-driven research.
His work has also been featured on platforms including Seeking Alpha and Sure Dividend.
Outside of work, Thomas enjoys weight lifting and soccer.
