UPDATE 1-BMW earnings slide in Q1 amid tariff pressures and challenges in China

Adds context on competitors, cost reductions, details on margin

BERLIN, May 6 (Reuters) - BMW's BMWG.DE pre-tax earnings slumped by 25% in the first quarter of the year and its core operating margin narrowed, but the German premium carmaker still beat estimates amid tariff pressures and a difficult market in China.

The company said on Wednesday its pre-tax earnings came in at 2.3 billion euros ($2.70 billion) in the first quarter, compared with analysts' forecast of 2.2 billion euros in a company-provided consensus. Group revenue fell by 8.1% to 31.0 billion euros.

BMW's results come after rivals Mercedes MBGn.DE and Audi also reported a difficult start to 2026, as the threat of higher tariffs looms on top of fierce competition from China.

Like many carmakers, BMW is turning to cost reductions to offset pressures from tariffs and high costs for raw materials in a globally weak automotive market.

The automaker's EBIT margin in its core automotive business stood at 5.0% in the first quarter, down from 6.9% a year earlier but ahead of analysts' forecast of 4.7%.




($1 = 0.8522 euros)


This page is machine-translated. Sahm tries to improve but does not guarantee the accuracy and reliability of the translation, and will not be liable for any loss or damage caused by any inaccuracy or omission of the translation. *Disclaimer: The above content only represents the author's personal position and opinion and does not represent any position of Sahm Capital Financial Company and Sahm cannot confirm the authenticity, accuracy, and originality of the above content. Investors should consider the risks of investment products in light of their circumstances before making any investment decisions. When necessary, please consult a professional investment advisor. Sahm does not provide any investment advice, nor does it make any commitments and guarantees.