Radical Earnings Cut": JPMorgan Sounds Alarm After BMW's Forecast Shock

BMW issued a radical earnings warning as it slashed its 2026 margin guidance to as low as 1%, from as high as 6% previously. China demand weakness, Middle East pressures, higher energy costs, and a softer consumer outlook underpin the downgrade. The company now expects 2026 automotive EBIT margin of 1%–3% and auto deliveries down 1–5%. It also flags a restructuring charge to trim the global footprint, amortizing over two years. Further details will be provided at the capital market day in September. Analysts described the warning as a wake-up call amid China weakness and macro headwinds.