Lear (LEA) has just put fresh numbers on the table for Q1 2026, with recent quarterly revenue running between US$5.6b and US$6.0b and basic EPS ranging from about US$1.50 to US$3.07 across the 2025 quarters, backed by trailing twelve month EPS of roughly US$8.22 on revenue of about US$23.3b. Over the past few reported periods, the company has seen revenue move from US$5.7b in Q4 2024 to US$6.0b in Q4 2025, while trailing net income excluding extra items has sat in the US$437m range. With trailing net profit margins around 1.9% and a large one off loss still in the rearview mirror, this set of results keeps the focus firmly on how efficiently Lear is turning a sizeable top line into lasting profitability.

See our full analysis for Lear.

With the headline figures in place, the next step is to see how these results line up against the widely held stories about Lear's growth potential, risk profile, and long term earnings power.

Margins Stuck Around 2% Despite US$23.3b Sales

• Over the last twelve months, Lear generated about US$23.3b of revenue with net income excluding extra items of roughly US$436.8m, which works out to a net margin of around 1.9% compared with 2.2% a year earlier.
• Consensus narrative talks about profit margins rising toward 4.2% within a few years. However, the latest trailing figures show margins still close to 2%, which raises fair questions about how quickly efficiency gains and higher content per vehicle are flowing through:
  • Trailing twelve month EPS of roughly US$8.22 and quarterly EPS moving between about US$1.50 and US$3.07 in 2025 sit well below the earnings levels analysts associate with their US$1.0b earnings scenario.
  • Recent quarterly net income excluding extra items stayed in the US$80m to US$165m range, which is meaningfully below the US$1.0b annual earnings level that the consensus scenario discusses.

Valuation Sits Below Peers And DCF Fair Value

• At a current share price of US$132.41 and a trailing P/E of 15.3x, Lear is priced below the cited peer average P/E of 20.3x and industry average P/E of 19.3x, and also below the DCF fair value of about US$205.10.
• Bulls point to this gap as a sign of potential upside if their earnings story plays out. The current numbers, however, leave a mixed picture:
  • Earnings grew at about 5.7% per year over five years, while forecasts now point to earnings growth of roughly 15.35% per year and revenue growth of about 2.5% per year. The step up in expected growth is materially higher than the trailing trend.
  • Trailing net margin at 1.9% and a US$271.0m one off loss in the last twelve months mean a portion of recent earnings is affected by special items, which bulls need to factor in when comparing today’s price with both peers and the DCF fair value.

Have a closer look at how optimistic investors connect these margin and valuation gaps to their long term thesis with the 🐂 Lear Bull Case.

One Off US$271m Loss And Insider Selling Stand Out

• The last twelve months include a one off loss of US$271.0m, an unstable dividend record, and significant insider selling over the past three months, all sitting alongside that 1.9% net margin and earnings of roughly US$436.8m.
• Bears highlight these as signs that risk is not fully reflected in the current valuation, and the trailing data does give them some concrete points to lean on:
  • The combination of a margin dip from 2.2% to 1.9% and that US$271.0m one off loss affects the quality of reported earnings over the period, making simple P/E comparisons less straightforward.
  • Forecasts calling for around 15.35% annual earnings growth and revenue growth of 2.5% per year will need to be weighed against these recent issues, especially if one off items or payout policies stay unpredictable.

If you want to see how cautious investors build a case around these risk signals and the recent loss, take a look at the 🐻 Lear 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 Lear on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With mixed signals on margins, valuation, and one off items, it helps to look past the headlines and review the full picture yourself. To weigh the cautious flags against the upside arguments, start by reviewing the 3 key rewards and 3 important warning signs.

See What Else Is Out There

With net margins close to 2%, a recent US$271.0m one off loss, and insider selling, the recent earnings picture carries clear pressure points for investors.

If those risks feel uncomfortable, you can immediately focus on steadier names by scanning 67 resilient stocks with low risk scores and compare companies where recent fundamentals look more resilient.

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.