Zacks Research Lowers Earnings Estimates for BorgWarner

BorgWarner Inc. (NYSE:BWA) – Investment analysts at Zacks Research decreased their Q3 2026 earnings per share estimates for shares of BorgWarner in a report released on Wednesday, August 26th. Zacks Research analyst Team now forecasts that the auto parts company will post earnings of $1.22 per share for the quarter, down from their previous estimate of $1.27. The consensus estimate for BorgWarner’s current full-year earnings is $5.19 per share. Zacks Research also issued estimates for BorgWarner’s Q4 2026 earnings at $1.31 EPS, FY2026 earnings at $5.19 EPS, Q1 2027 earnings at $1.35 EPS, Q2 2027 earnings at $1.47 EPS, Q3 2027 earnings at $1.48 EPS, Q4 2027 earnings at $1.51 EPS, FY2027 earnings at $5.82 EPS, Q1 2028 earnings at $1.46 EPS, Q2 2028 earnings at $1.61 EPS and FY2028 earnings at $6.35 EPS.

BorgWarner (NYSE:BWA) last released its earnings results on Wednesday, August 5th. The auto parts company reported $1.42 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.28 by $0.14. The firm had revenue of $3.65 billion for the quarter, compared to analyst estimates of $3.58 billion. BorgWarner had a return on equity of 19.10% and a net margin of 2.89%.The company’s revenue was up .3% on a year-over-year basis. During the same quarter last year, the firm posted $1.21 EPS. BorgWarner has set its FY 2026 guidance at 5.050-5.300 EPS.

Several other equities analysts have also recently commented on BWA. TD Cowen upped their target price on shares of BorgWarner from $67.00 to $68.00 and gave the company a “hold” rating in a research note on Thursday, August 6th. Sanford C. Bernstein upgraded shares of BorgWarner to a “buy” rating in a report on Wednesday, June 10th. UBS Group raised shares of BorgWarner from a “neutral” rating to a “buy” rating and upped their price objective for the company from $61.00 to $95.00 in a research report on Wednesday, June 10th. Deutsche Bank Aktiengesellschaft set a $80.00 target price on shares of BorgWarner in a research note on Thursday, August 6th. Finally, JPMorgan Chase & Co. boosted their price target on BorgWarner from $75.00 to $85.00 and gave the company an “overweight” rating in a research note on Monday, August 10th. Nine investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $75.93.

BorgWarner Stock Down 0.7%

BWA opened at $64.66 on Thursday. The business has a 50 day moving average of $65.89 and a 200-day moving average of $61.97. The stock has a market capitalization of $13.17 billion, a price-to-earnings ratio of 32.33, a P/E/G ratio of 1.17 and a beta of 1.10. The company has a current ratio of 2.13, a quick ratio of 1.76 and a debt-to-equity ratio of 0.67. BorgWarner has a 1-year low of $40.50 and a 1-year high of $78.82.

Hedge Funds Weigh In On BorgWarner

Several hedge funds and other institutional investors have recently modified their holdings of the stock. BlackRock Inc. acquired a new position in BorgWarner during the second quarter worth $1,678,187,000. California State Teachers Retirement System lifted its holdings in shares of BorgWarner by 6,262.3% during the second quarter. California State Teachers Retirement System now owns 15,870,795 shares of the auto parts company’s stock valued at $1,053,821,000 after acquiring an additional 15,621,343 shares during the period. Dimensional Fund Advisors LP grew its holdings in shares of BorgWarner by 1.5% in the 4th quarter. Dimensional Fund Advisors LP now owns 11,961,482 shares of the auto parts company’s stock worth $538,996,000 after purchasing an additional 178,853 shares during the last quarter. AQR Capital Management LLC increased its position in shares of BorgWarner by 22.7% during the 4th quarter. AQR Capital Management LLC now owns 9,222,352 shares of the auto parts company’s stock worth $415,559,000 after purchasing an additional 1,703,576 shares in the last quarter. Finally, State Street Corp lifted its holdings in BorgWarner by 5.3% during the 2nd quarter. State Street Corp now owns 7,633,760 shares of the auto parts company’s stock valued at $255,578,000 after purchasing an additional 380,942 shares during the last quarter. Institutional investors own 95.67% of the company’s stock.

Insider Activity

In other BorgWarner news, Director Rajesh Kalathur purchased 7,407 shares of the business’s stock in a transaction on Wednesday, August 19th. The stock was purchased at an average price of $67.59 per share, for a total transaction of $500,639.13. Following the completion of the purchase, the director directly owned 7,407 shares in the company, valued at approximately $500,639.13. This trade represents a ∞ increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CAO Amy B. Kulikowski sold 2,900 shares of BorgWarner stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $68.60, for a total value of $198,940.00. Following the sale, the chief accounting officer directly owned 9,725 shares in the company, valued at $667,135. The trade was a 22.97% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.76% of the stock is currently owned by insiders.

BorgWarner Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st will be given a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a dividend yield of 1.1%. The ex-dividend date is Tuesday, September 1st. BorgWarner’s payout ratio is 34.00%.

BorgWarner declared that its board has approved a share buyback plan on Wednesday, August 5th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the auto parts company to purchase up to 7.7% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s leadership believes its shares are undervalued.

Key Headlines Impacting BorgWarner

Here are the key news stories impacting BorgWarner this week:

• Positive Sentiment: Zacks raised its FY2026 EPS forecast to $5.19 from $5.15, matching the broader consensus estimate. Longer-term expectations also improved, with FY2027 EPS increasing to $5.82 from $5.68 and FY2028 EPS rising to $6.35 from $6.00. BorgWarner analyst estimates
• Positive Sentiment: The analyst lifted estimates for several future quarters, including Q1 2027 EPS to $1.35 from $1.34, Q2 2027 EPS to $1.47 from $1.44, Q3 2027 EPS to $1.48 from $1.42, Q4 2027 EPS to $1.51 from $1.48, Q1 2028 EPS to $1.46 from $1.42, and Q2 2028 EPS to $1.61 from $1.50. These changes suggest improved longer-term earnings prospects.
• Neutral Sentiment: The revisions do not change the current full-year consensus of $5.19 EPS, while the stock’s valuation remains relatively demanding at roughly 32 times earnings. Investors may therefore look for stronger near-term results or guidance before assigning additional upside.
• Negative Sentiment: Zacks reduced its Q3 2026 EPS forecast to $1.22 from $1.27 and its Q4 2026 forecast to $1.31 from $1.39. The cuts indicate softer near-term earnings expectations and likely help explain the pressure on BWA despite the more constructive outlook for 2027 and 2028.

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.