Mercedes-Benz stock weighs China pressure against record BEV sales

Mercedes-Benz Group reported mixed third-quarter results on Wednesday, October 28, 2026, as stronger electric-vehicle demand and resilient support businesses failed to offset pressure in China. The company reported the figures in a Mercedes-Benz Media release.

Mercedes-Benz stock traded at 41.22 euros on Lang & Schwarz at 11:34 CET on Wednesday, November 4, 1.83 percent above the Xetra close of Tuesday, November 3.

China weighs on car profitability

Group revenue fell 4.5 percent year on year to 30.7 billion euros. Reported EBIT rose to 1.77 billion euros from 0.75 billion euros, while net profit increased to 1.52 billion euros from 1.19 billion euros. The reported EBIT improvement mainly reflected lower adjustments in the prior-year comparison.

On an adjusted basis, which removes material individual effects such as restructuring, legal proceedings and mergers and acquisitions, group EBIT declined 15 percent to 1.78 billion euros. Currency headwinds and tougher competition in China weighed on the result.

The pressure was concentrated in Mercedes-Benz Cars. Adjusted EBIT fell 50.8 percent to 560 million euros, reducing adjusted return on sales to 2.5 percent from 4.8 percent. Car sales declined 7.8 percent to 407,232 vehicles, with China the main drag.

The product offensive nevertheless produced measurable gains outside China. Battery-electric vehicle sales reached a quarterly record of 68,428 units, up 60.5 percent from the prior-year quarter. Sales outside China grew in Europe and the United States, while the company said new models continued to build momentum.

Vans and finance provide support

Mercedes-Benz Vans delivered 84,421 vehicles, up 0.7 percent. Adjusted EBIT was 397 million euros, and adjusted return on sales reached 9.4 percent. Higher sales outside China and lower product-related spending partly offset pricing pressure and costs linked to the new van architecture.

Mercedes-Benz Financial Services was a stronger contributor. Adjusted EBIT increased 42.2 percent to 445 million euros, while adjusted return on equity rose to 13.8 percent from 9.6 percent. The company attributed the improvement to better portfolio margins, lower credit costs and disciplined expenses.

Lower 2026 outlook raises stakes

Mercedes-Benz reduced its 2026 adjusted Cars return-on-sales forecast to 2 to 3 percent from 3 to 5 percent. The company cited a more challenging Chinese market and higher fourth-quarter costs for raw materials and product lifecycle measures.

Group EBIT is now expected at the prior-year level rather than significantly above it. Industrial free cash flow is expected to be significantly below the prior-year level. The Vans outlook remains an adjusted return on sales of 8 to 10 percent, while Financial Services continues to target a 12 to 14 percent adjusted return on equity.

For investors, the results leave the new-model cycle as the main counterweight to weaker Chinese profitability. Record electric-car demand and resilient non-Cars operations support the recovery case, but the lower margin outlook shows that execution and pricing remain critical.

The real-time quote of Mercedes-Benz stock provides the latest trading reference for the share.

Current market developments can be followed in the current market reports.

More news and analyses on Mercedes-Benz stock will track the margin recovery, model launches and China strategy.