BorgWarner (NYSE:BWA) Issues FY 2026 Earnings Guidance

BorgWarner (NYSE:BWA) issued an update on its FY 2026 earnings guidance on Wednesday morning. The company provided EPS guidance of 5.000-5.200 for the period, compared to the consensus EPS 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.

BorgWarner Stock Performance

Shares of BWA opened at $66.40 on Friday. The business has a 50-day simple moving average of $47.73 and a two-hundred day simple moving average of $44.39. The stock has a market cap of $14.20 billion, a price-to-earnings ratio of 53.12, a PEG ratio of 1.31 and a beta of 1.09. BorgWarner has a 52 week low of $24.40 and a 52 week high of $70.08. The company has a quick ratio of 1.69, a current ratio of 2.07 and a debt-to-equity ratio of 0.69.

BorgWarner (NYSE:BWA) last announced its quarterly earnings data on Wednesday, February 11th. The auto parts company reported $1.35 EPS for the quarter, beating the consensus estimate of $1.16 by $0.19. The business had revenue of $3.57 billion for the quarter, compared to the consensus estimate of $3.49 billion. BorgWarner had a return on equity of 17.89% and a net margin of 1.93%.The business’s revenue was up 3.9% on a year-over-year basis. During the same period in the previous year, the business earned $1.01 earnings per share. BorgWarner has set its FY 2026 guidance at 5.000-5.200 EPS. On average, analysts expect that BorgWarner will post 4.28 EPS for the current year.

BorgWarner Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, March 16th. Shareholders of record on Monday, March 2nd will be issued a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a dividend yield of 1.0%. The ex-dividend date of this dividend is Monday, March 2nd. BorgWarner’s dividend payout ratio is 107.94%.

Analysts Set New Price Targets

Several brokerages have recently issued reports on BWA. JPMorgan Chase & Co. lifted their target price on BorgWarner from $56.00 to $76.00 and gave the stock an “overweight” rating in a report on Thursday. The Goldman Sachs Group upped their price objective on BorgWarner from $54.00 to $78.00 and gave the stock a “buy” rating in a report on Thursday. Evercore raised their target price on shares of BorgWarner from $50.00 to $53.00 and gave the company an “outperform” rating in a report on Monday, November 24th. Barclays boosted their price target on shares of BorgWarner from $55.00 to $70.00 and gave the stock an “overweight” rating in a research report on Thursday. Finally, Wells Fargo & Company increased their price objective on shares of BorgWarner from $52.00 to $75.00 and gave the company an “overweight” rating in a research report on Thursday. Eight investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $57.14.

More BorgWarner News

Here are the key news stories impacting BorgWarner this week:

• Positive Sentiment: JPMorgan raised its price target on BWA from $56 to $76 and moved the stock to “overweight,” implying meaningful upside and likely supporting further buying interest. JPMorgan Price Target Raise
• Positive Sentiment: Q4 results beat expectations — EPS $1.35 vs $1.16 est., revenue $3.57B vs $3.49B — and management highlighted margin gains and program wins during the earnings call, reinforcing momentum from the quarter. Reuters: Quarterly Profit Rises
• Positive Sentiment: Multiple OEM awards announced (800V integrated drive modules, expanded BMS production, first 48V eXD program, VTG turbocharger, and a major North American iDM/generator program) signal sustained revenue runway from both electrified and hybrid platforms. PR Newswire: 2025 Results & Awards
• Positive Sentiment: BorgWarner entered the data‑center market via a Master Supply Agreement to supply modular turbine generator systems — a new end market that analysts highlight as a material incremental growth opportunity. PR Newswire: Data Center Award
• Positive Sentiment: The company returned about $630M to shareholders in 2025, underscoring cash generation and capital allocation that can support buybacks/dividend support for the stock. PR Newswire: Return of Capital
• Neutral Sentiment: Analyst and commentary pieces (Zacks, TipRanks, Seeking Alpha) highlight BWA as a momentum/turnaround story with structural EV and powertrain exposure — useful context but largely reiterative of the company’s stated strategy. Zacks: Momentum Stock
• Neutral Sentiment: Detailed earnings call materials and transcripts were published (slides, call transcript); these provide line‑item detail for investors but do not change the headline beat. Seeking Alpha: Earnings Call Transcript
• Negative Sentiment: Management issued FY‑2026 guidance that was modestly soft vs. consensus: EPS guidance of $5.00–$5.20 (vs ~5.11 consensus) and revenue guidance of $14.0–$14.3B (below ~$14.4B consensus). Analysts flagged the softer revenue outlook as a possible constraint on multiple expansion. Seeking Alpha: Soft FY26 Guidance

Hedge Funds Weigh In On BorgWarner

A number of large investors have recently made changes to their positions in the company. Sivia Capital Partners LLC bought a new position in BorgWarner in the 2nd quarter valued at $339,000. Daiwa Securities Group Inc. bought a new position in shares of BorgWarner in the second quarter worth about $335,000. Coldstream Capital Management Inc. increased its stake in BorgWarner by 18.7% in the 3rd quarter. Coldstream Capital Management Inc. now owns 7,195 shares of the auto parts company’s stock worth $316,000 after buying an additional 1,131 shares during the period. Two Sigma Securities LLC purchased a new position in BorgWarner in the 2nd quarter worth about $285,000. Finally, Newbridge Financial Services Group Inc. bought a new stake in BorgWarner during the 3rd quarter valued at about $277,000. 95.67% of the stock is owned by hedge funds and other institutional investors.

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.