Tesla Q2 FY2026: revenue up 26.0%, EPS misses, free cash flow negative
Tesla's Q2 FY2026 revenue rose 26.0% to $28.24 billion on record second-quarter deliveries of 480,126 vehicles, yet operating income fell 57.0% to $0.40 billion and free cash flow turned negative at $1.09 billion as capital spending jumped 142.0%. Earnings of $0.32 per share missed the $0.52 consensus estimate. The read: top-line growth is real, but the profit engine is squeezed by fading regulatory credits and lower average selling prices while the company spends heavily on AI and infrastructure.
1 · Expected vs. Actual
Free preview belowGAAP EPS of $0.32 came in about 38.0% below the $0.52 consensus estimate and down 3.0% from $0.33 a year ago. Non-GAAP EPS of $0.33 removes $0.29 per share of stock-based compensation but adds back a $0.22 per share unrealized SpaceX investment gain and $0.08 of tax items. Operating income of $0.40 billion, a 1.4% operating margin, is the plainest explanation for the miss.
Revenue of $28.24 billion rose 26.0% from $22.50 billion a year ago, helped by record deliveries of 480,126 units, up 25.0%, and 50.0% growth in Services and other. But gross margin slipped to 16.8% from 17.2% a year ago and 21.1% last quarter, and regulatory credit revenue fell to $146 million from $439 million. The top line grew while the quality of that growth thinned.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
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