BorgWarner (NYSE:BWA) Updates FY 2026 Earnings Guidance

BorgWarner (NYSE:BWA) issued an update on its FY 2026 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of 5.000-5.200 for the period, compared to the consensus estimate of 5.110. The company issued revenue guidance of $14.0 billion-$14.3 billion, compared to the consensus revenue estimate of $14.4 billion.

Analysts Set New Price Targets

A number of analysts recently issued reports on the company. Wells Fargo & Company lowered their price target on BorgWarner from $54.00 to $52.00 and set an “overweight” rating for the company in a research report on Tuesday, December 9th. JPMorgan Chase & Co. increased their price objective on shares of BorgWarner from $45.00 to $53.00 and gave the stock an “overweight” rating in a research report on Monday, October 20th. Piper Sandler restated a “neutral” rating and set a $51.00 target price (down previously from $52.00) on shares of BorgWarner in a research report on Thursday, January 8th. Robert W. Baird set a $55.00 target price on BorgWarner in a research note on Wednesday, January 14th. Finally, Morgan Stanley reaffirmed an “equal weight” rating and issued a $49.00 price target (up previously from $42.00) on shares of BorgWarner in a research note on Monday, December 8th. Eight analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $47.31.

BorgWarner Price Performance

Shares of BorgWarner stock traded up $12.70 during trading on Wednesday, reaching $66.68. The company’s stock had a trading volume of 8,838,178 shares, compared to its average volume of 2,409,452. The business has a 50 day moving average price of $46.80 and a 200-day moving average price of $44.08. The company has a market capitalization of $14.26 billion, a P/E ratio of 105.84, a price-to-earnings-growth ratio of 1.07 and a beta of 1.09. The company has a quick ratio of 1.69, a current ratio of 2.05 and a debt-to-equity ratio of 0.63. BorgWarner has a 12-month low of $24.40 and a 12-month high of $68.82.

BorgWarner (NYSE:BWA) last released its quarterly earnings data on Wednesday, February 11th. The auto parts company reported $1.35 earnings per share for the quarter, beating the consensus estimate of $1.16 by $0.19. BorgWarner had a return on equity of 16.72% and a net margin of 0.94%.The firm had revenue of $3.57 billion during the quarter, compared to the consensus estimate of $3.49 billion. During the same period last year, the business posted $1.01 EPS. BorgWarner’s quarterly revenue was up 3.9% on a year-over-year basis. BorgWarner has set its FY 2026 guidance at 5.000-5.200 EPS. As a group, sell-side analysts anticipate that BorgWarner will post 4.28 EPS for the current year.

BorgWarner Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, March 16th. Investors of record on Monday, March 2nd will be given a $0.17 dividend. The ex-dividend date of this dividend is Monday, March 2nd. This represents a $0.68 annualized dividend and a dividend yield of 1.0%. BorgWarner’s dividend payout ratio (DPR) is currently 107.94%.

Key BorgWarner News

Here are the key news stories impacting BorgWarner this week:

• Positive Sentiment: Q4 beat — BorgWarner reported $1.35 EPS vs. $1.16 consensus and revenue of $3.57B (up 3.9% y/y), showing strength in drivetrain and Morse systems. This beat is a primary catalyst for the rally. BorgWarner (BWA) Q4 Earnings and Revenues Top Estimates
• Positive Sentiment: Record program awards and OEM wins — the company announced multiple new supply awards (800V integrated drive modules, expanded BMS programs, 48V eXD in China, VTG turbocharger programs, and more), underpinning longer?term growth in electrified powertrain components. BorgWarner secures record number of awards, beats Q4 expectations, sets soft FY26 guidance
• Positive Sentiment: Strategic diversification — BorgWarner entered the data?center market via a master supply agreement to provide modular turbine generator systems, which broadens end markets beyond automotive. BorgWarner Strategically Enters Data Center Market
• Neutral Sentiment: Shareholder returns — the company reported returning roughly $630M to shareholders in 2025 (mix of buybacks/dividends), which supports investor confidence but is largely a confirmation rather than a new catalyst. BorgWarner Reports 2025 Results and Provides 2026 Guidance
• Negative Sentiment: Soft FY?2026 guidance — management set EPS guidance of $5.00–$5.20 (consensus ~$5.11) and revenue guidance of $14.0B–$14.3B (below the ~$14.4B street view), which tempers the upside from the quarter and is being scrutinized by investors. BorgWarner secures record number of awards, beats Q4 expectations, sets soft FY26 guidance

Institutional Trading of BorgWarner

A number of institutional investors have recently modified their holdings of the company. State Street Corp grew its position in BorgWarner by 5.3% in the 2nd quarter. State Street Corp now owns 7,633,760 shares of the auto parts company’s stock worth $255,578,000 after purchasing an additional 380,942 shares during the last quarter. AQR Capital Management LLC boosted its position in shares of BorgWarner by 119.7% during the third quarter. AQR Capital Management LLC now owns 7,518,776 shares of the auto parts company’s stock worth $330,525,000 after buying an additional 4,095,902 shares during the period. Bank of America Corp DE grew its holdings in BorgWarner by 4.3% in the 3rd quarter. Bank of America Corp DE now owns 3,727,884 shares of the auto parts company’s stock worth $163,878,000 after buying an additional 153,637 shares in the last quarter. Sei Investments Co. increased its position in BorgWarner by 8.5% in the 3rd quarter. Sei Investments Co. now owns 2,729,098 shares of the auto parts company’s stock valued at $119,972,000 after acquiring an additional 213,406 shares during the period. Finally, Adage Capital Partners GP L.L.C. raised its stake in BorgWarner by 233.6% during the 2nd quarter. Adage Capital Partners GP L.L.C. now owns 1,111,000 shares of the auto parts company’s stock valued at $37,196,000 after acquiring an additional 778,000 shares in the last quarter. Hedge funds and other institutional investors own 95.67% of the company’s stock.

About BorgWarner

BorgWarner Inc is a global automotive supplier specializing in propulsion and drivetrain solutions for combustion, hybrid and electric vehicles. The company’s product portfolio includes turbochargers, thermal management systems, transmission components, e-Propulsion modules and advanced fuel-efficiency technologies. BorgWarner serves original equipment manufacturers (OEMs) across passenger cars, light trucks and commercial vehicles, supporting both legacy internal-combustion engines and emerging electrification trends.

Founded in 1928 through the merger of several driveline companies, BorgWarner has grown through strategic acquisitions and continuous investment in research and development.