Harley‑Davidson Inc. reported first‑quarter 2026 revenue of $1.173 billion, a 12% decline from the same period a year earlier, but still above the consensus estimate of $996.6 million. The company’s diluted earnings per share were $0.22, falling short of the consensus estimate of $0.23 and marking a 79% drop from the $1.07 EPS reported in Q1 2025. The revenue beat was driven by a 14% increase in North American retail sales and an 8% rise in global retail sales, while dealer inventory fell 22% worldwide as part of the “Back to the Bricks” strategy to align wholesale and retail demand.
Operating income for the quarter was $23 million, an 85% decline from $160 million in Q1 2025. Margin compression was largely attributable to $45 million in tariff costs, unfavorable manufacturing leverage, and higher marketing and restructuring expenses. Harley‑Davidson Motor Company’s operating income fell 84% to $12 million, while Harley‑Davidson Financial Services’ operating income declined 65% to $4 million. The LiveWire segment posted an operating loss of $18 million, despite an 87% revenue increase to $1.1 billion.
Management highlighted the company’s “Back to the Bricks” plan, stating, "We're pleased with our first quarter results, which reflect actions we've taken to drive demand and improve dealer health." The plan focuses on dealer profitability and a 22% year‑over‑year reduction in dealer inventory, positioning the network for the upcoming riding season.
Harley‑Davidson reaffirmed its full‑year 2026 guidance. Revenue guidance remains unchanged, while operating income guidance is now a range of a $40 million loss to a $10 million profit. Harley‑Davidson Financial Services is expected to generate $45–$60 million in operating income, and LiveWire is projected to continue operating at a loss of $70–$80 million. CEO Artie Starrs noted, "As we work to prudently manage overall company inventory levels for 2026, we expect this will have a deleverage impact which will put pressure on operating leverage and operating margin, but we expect to come into alignment by next year."
Market reaction to the results was positive, with the stock rising 1.34% in pre‑market trading. Investors were encouraged by the revenue beat and the company’s reaffirmation of full‑year guidance, which signals confidence in the turnaround strategy despite the EPS miss and margin compression.
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