Mercedes-Benz cuts 2026 sales forecast as profit rises

Mercedes-Benz Group reported a significant rise in second-quarter profit on Tuesday, July 28, 2026, but simultaneously lowered its full-year sales outlook for its passenger car business, citing intense competition and a sharp downturn in China. The German automaker now expects unit sales for Mercedes-Benz Cars, and therefore group revenue, to be slightly below 2025 levels, revising its previous forecast for broadly stable performance.

The company's second-quarter operating profit rose 22 percent to 1.55 billion euros, despite a 3 percent decline in group revenue to 32.1 billion euros. Net income increased 13.5 percent to 1.09 billion euros. This profit resilience was attributed to stringent cost-cutting measures, strong performances from its financial services and vans divisions, and a one-time gain from the planned sale of its leasing subsidiary Athlon. The financial services unit posted a 70 percent jump in adjusted earnings.

However, the core cars division faced substantial pressure. Adjusted operating profit for Mercedes-Benz Cars fell 26 percent to 909 million euros. The division's reported operating profit plunged to just 49 million euros, a figure that included 704...