Key Highlights

  • Diluted EPS of USD 0.40 missed the consensus estimate of USD 0.47 and compared with USD 3.10 a year earlier.
  • Motorcycle segment Revenue of USD 964.0 million fell 10% and came in below the consensus estimate of USD 1.07 billion.
  • North American retail sales of new motorcycles rose 9%, while global dealer inventory fell 26% year over year.
  • Motorcycle gross Margin rose 173 basis points to 28.1%, with 2026 Operating Income guidance at USD 25 to 55 million.

Harley-Davidson, Inc. (NYSE:HOG) reported third quarter 2026 Diluted Earnings per Share of USD 0.40, below a consensus estimate of USD 0.47 and well under USD 3.10 a year earlier. Net Income attributable to the company was USD 43 million against USD 377 million. Revenue from the Harley-Davidson Motor Company segment, known as HDMC, was USD 964.0 million, down 10% on lower shipment Volume and below a consensus estimate of USD 1.07 billion. Combined revenue across HDMC, LiveWire and financial services was about USD 1.08 billion.

The year over year decline in profit mainly reflects the prior year quarter, when the financial services arm sold most of its securitization beneficial interests and retail finance receivables, which produced a benefit in that quarter. Financial services revenue was USD 110.8 million versus USD 261.2 million.

Retail Gains, Inventory Cuts and Margin Detail

President and Chief Executive Officer Artie Starrs said the company is aligning wholesale activity with retail demand. North American retail sales of new motorcycles rose 9%, accelerating from 3% in the prior quarter and marking a fourth straight quarter of growth. Global retail sales rose 5%, with Australia and New Zealand up 15%. Global dealer inventory ended the quarter 26% below a year earlier and 6% below the second quarter, and shipments of 33,616 units were down 8%.

HDMC gross margin improved 173 basis points to 28.1%, and selling, administrative and engineering expense eased 1% to USD 226.5 million. HDMC operating income was USD 44.3 million, down 18%, for a 4.6% margin against 5.0%. Adjusted EBITDA margin improved to 9.7% from 8.7%. LiveWire revenue was USD 7.9 million with an operating loss of USD 17.8 million, and the unit withdrew its guidance.

Raised Guidance, Capital Return and Board Changes

For the full year, the company raised HDMC and HDFS guidance for the second time this year. HDMC global retail sales and wholesale shipments are each guided to 135,500 to 139,000 units, HDMC operating income to USD 25 million to USD 55 million, and HDFS operating income to USD 60 million to USD 70 million. Capital Investment was revised to USD 140 million to USD 165 million. Listed risks include tariffs, the conflict in Iran and LiveWire disclosing substantial doubt about its ability to continue as a going concern.

The company returned USD 110 million to shareholders in the quarter, including USD 91 million of discretionary share repurchases and USD 19 million of dividends at USD 0.1875 per share. Cash and cash equivalents were USD 2.1 billion. The board also appointed two independent directors effective October 28, 2026, bringing the total to ten.

Metrics to Track Into the Fourth Quarter

The company offers several measurable markers. North American retail growth of 9% against 3% in the prior quarter sets a comparison for the next report, and dealer inventory at 91% current Model Year 2026 motorcycles in North America, up from 86%, is another. Full year retail and shipment guidance of 135,500 to 139,000 units frames fourth quarter volume, given third quarter shipments of 33,616. The HDFS Operating Margin of 9.7% and its retail Credit loss ratio, which sat below the same periods in 2024 and 2025, are the finance indicators.