In second quarter Part 2026 Mercedes-Benz It reported revenues of €32,1 billion, down 3% from €33,2 billion in the same period of 2025. Group EBIT rose to approximately €1,5 billion, compared to €1,3 billion the previous year, representing growth of around 22%. Overall performance was driven primarily by commercial vehicles and financial services. The automotive division, however, made a weaker contribution, penalized by competitive pressure, a less profitable model mix, and the costs incurred for lineup renewal and new product launches.
The CEO Wave Källenius He stressed that, “despite a challenging market context”, the group remained on track, continuing to push forward with the launch program of new models.
Mercedes BenzChina squeezes sales and margins
Mercedes-Benz Cars has 417.765 cars sold in total in the quarter, down from 453.674 units in the same period of 2025. The figure reflects above all the 30% contraction recorded in China, where subdued demand, strong competition, and model lineup renewal continue to weigh on sales performance. Growth of 4% in Europe and 10% in the United States only partially offset the decline in China. Excluding the Asian market, global car sales would have increased 2% year-over-year.
The difficulties were also reflected in the profitability of the automotive divisionAdjusted EBIT fell 26% to 909 million euros, compared to over 1,2 billion in the second quarter of 2025. The adjusted margin on sales stood at 4%, from the previous 5,1%, still remaining within the annual range indicated by the group, between 3% and 5%.
The division's reported EBIT fell to €49 million, compared to €783 million the previous year, including €704 million in impairment charges related to investments in China. Mercedes-Benz noted that these accounting charges did not result in a corresponding cash outflow in the quarter.
Mercedes: Electric vehicles accelerating and targets revised upwards
In an overall weak scenario, the Electric vehicles represent one of the main positive signsIn the second quarter, sales of fully electric Mercedes-Benz vehicles increased by 51 percent year-on-year, reaching 52.852 units. In Europe, growth was 87%, while orders for BEV models more than doubled in the quarter.
In light of these findings, the group reviewed Forecasts for electrified vehicles are rising, which are expected to represent between 23% and 25% of total car sales in 2026. The previous estimate indicated a share between 21% and 23%.
According to Källenius, “customer response to our new models is strong,” an indication that Mercedes-Benz considers crucial to sustaining profitability in the coming quarters and at least partially offsetting the weakness in traditional markets.
Mercedes cuts estimates and looks to defense
For the entire financial year Mercedes-Benz now plans car sales slightly lower than in 2025Based on the definitions used by the group, the revision could result in an annual decline of between 2% and 7,5%. Consolidated revenue is also expected to be slightly below last year's levels, while the company previously expected revenue and volumes to remain essentially stable.
The group expects the global automotive market to remain weak. Sales in Europe are expected to remain close to 2025 levels, while the US market is expected to be slightly more subdued. The most challenging outlook continues to be in China, where demand is expected to be significantly lower than the previous year. Mercedes-Benz reiterated, however, that "the Chinese market and customers in China remain of great strategic importance." At the same time, the company identified security and defense vehicles as a new "strategic development area."
The group intends to leverage over 45 years of experience in supplying vehicles for security, rescue and defense, through modified versions of the G-Class, Sprinter and Vito. To this end, an agreement has been signed memorandum of understanding with the German company Tytan to evaluate possible collaboration on vehicle-based applications, including defense systems from drones and mobile drone-carrying and command units.
Despite the cut in estimates, the market rewarded the quarterly results and the positive signals coming from the growth in operating profit and electricity sales. Mercedes-Benz shares soar on the Frankfurt Stock Exchange, with an increase of more than 5% and then settling around +2,5%.
