Goodyear Tire & Rubber (GT) has just posted Q1 2026 results with revenue of US$3,881 million and a basic EPS loss of US$0.86, alongside trailing 12 month EPS of US$7.23 in losses on revenue of US$17.9 billion that keeps the business in negative territory. Over recent quarters, revenue has moved between US$4,253 million in Q1 2025 and US$4,917 million in Q4 2025 while basic EPS has swung from a profit of US$0.40 in Q1 2025 to a large loss of US$7.62 in Q3 2025 and back to a loss of US$0.86 in the latest quarter, underscoring how volatile margins have been. Analysts are watching how the company progresses from here, with this latest result putting the spotlight firmly on whether the business can steadily rebuild profitability and protect margins from further pressure.

See our full analysis for Goodyear Tire & Rubber.

With the numbers on the table, the next step is to see how this earnings path lines up with the dominant narratives around Goodyear Tire & Rubber, and where those stories may need a reset.

TTM loss of US$2.1b keeps profitability under pressure

• Over the last 12 months, Goodyear reported a net loss of about US$2.1b on US$17.9b of revenue, with trailing EPS at a loss of US$7.23, which keeps the business firmly in loss making territory despite some profitable quarters in 2025.
• Consensus narrative expects margins to improve from a current loss position toward 1.7% profit in about three years, yet the recent run rate shows losses widening over the past five years, so investors need to weigh:
  • Whether cost programs like Goodyear Forward and plant modernization can shift net income from a US$2.1b loss toward the forecast US$317.1 million of earnings cited in the broader analyst work.
  • How much confidence to place in a forecasted earnings growth rate above 100% per year when trailing figures still point to sizable ongoing losses.

Revenue near US$17.9b, but growth outlook sits at 0.3%

• On a trailing 12 month basis, revenue is about US$17.9b, and forward looking estimates point to revenue growth of 0.3% per year compared with an 11.3% forecast for the wider US market. This frames the company as a relatively low growth story on the top line.
• Bulls argue that premium tires, EV focused products and digital fleet solutions can support earnings even on modest revenue growth, and the current data gives them and skeptics a few concrete points to work with:
  • Flat to low growth revenue assumptions still underpin forecasts for margins to rise from around a 9.4% loss toward small positive single digit levels, which represents a large swing in profitability without a large move in sales.
  • If that margin shift toward the US$317.1 million to US$380.9 million earnings range plays out on roughly US$18.5b to US$18.9b of revenue, it would mean the business is generating more earnings from each dollar of sales than it does today.

Bulls point to cost cuts and premium mix to justify a sharp earnings rebound from a US$2.1b loss, while the numbers still show heavy trailing losses and only 0.3% expected revenue growth, so it is worth seeing how that optimistic path is built out in detail. 🐂 Goodyear Tire & Rubber Bull Case

Low 0.1x P/S contrasts with weak interest cover

• The stock trades on a P/S of about 0.1x against roughly 0.7x for the US Auto Components industry and about 6.7x for peers. At the same time, interest payments are not well covered by earnings, which indicates that the balance sheet is doing some of the heavy lifting behind that low multiple.
• Bears highlight that high debt and poor interest coverage can cap any benefit from a low sales multiple, and the trailing figures give this view some clear support:
  • Multi year losses widening at about 29.2% per year and a trailing loss of US$2.1b leave limited earnings to service debt, which is exactly what weak interest coverage is capturing.
  • Even with a P/S of 0.1x and an analyst price target reference of US$8.73 against the current US$6.86 share price, the combination of large losses and thin coverage of interest charges means many investors may focus first on balance sheet resilience rather than headline valuation.

With a very low 0.1x P/S multiple sitting alongside multi billion dollar losses and weak interest coverage, cautious investors are worth hearing out on how much balance sheet risk is acceptable at this point in the cycle. 🐻 Goodyear Tire & Rubber Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Goodyear Tire & Rubber on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

Uncertain about how the mix of risks and rewards adds up for you personally? Take a moment to weigh the data, then check the 2 key rewards and 1 important warning sign.

See What Else Is Out There

Goodyear's multi year losses of about US$2.1b, weak interest coverage and heavily pressured margins show how much risk sits on the balance sheet today.

If that level of financial strain feels uncomfortable, you can quickly compare it with companies in the solid balance sheet and fundamentals stocks screener (44 results) to focus on businesses with stronger foundations.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.