Volvo Cars Q2 2026: Summer break (Underperform)

Research evidence excerpt

Volvo Cars Q2 2026: Summer break (Underperform)

21 July 2026

Harry Martin, CFA

+44 20 7676 8965

European Automobiles & Components harry.martin@bernsteinsg.com

Gali Salvatorelli NaraghiVolvo Car AB +44 20 7676 6741

Rating gali.salvatorelli-naraghi@bernsteinsg.com

Underperform Stephen Reitman

+44 20 7762 5535

Price Target stephen.reitman@bernsteinsg.com

VOLCARB.SS 17.00 SEK Specialist Sales

James Brady

+44 20 7762 5272

james.brady@bernsteinsg.com

Volvo Cars, much like the world’s top footballers who have just completed the longest World

Close Date 20 Jul 2026

Cup of all time, reaches mid-July in need of a summer break and reset. And while car plants

VOLCARB.SS Close Price (SEK) 19.15

in Europe do cease production lines at this time of year, most of the industry’s (and Volvo’s)

Price Target (SEK) 17.00

issues are too pressing to be ignored until September. Q2 was clearly a tough quarter: EBIT

Upside/(Downside) (11)%

missed consensus by 25%, FY volume guidance was removed, and the stock dropped 10%

52-Week Range 36.54/17.80

on the day. To Volvo’s credit, the predominant issues are market-level (collapse of pricing and

EDME 1,587.83

European brand performance in China, discounting in Europe and removal of EV credits in the

FYE Dec

U.S.) which are causing volume and mix headwinds. Company-specific performance metrics

Div Yield NA

are better: cost cutting is running ahead of plan, and even in Q2 Volvo gained share of the

Market Cap (SEK) (M) 57,058

global electric+hybrid car market. Much from here rests on the success of the EX60 launch,

EV (SEK) (M) 53,962

but we retain our Underperform, with many risks still there in H2 and beyond.

Performance YTD 1M 6M 12M

Q2 miss driven by volume & mix. Volvo reported a worse-than-expected Q2 on both Absolute (%) (37.6) (1.7) (36.9) 2.1