Harley-Davidson, Inc. (NYSE:HOG) reported its first-quarter 2026 financial results Tuesday. The report showed a bottom-line miss alongside a revenue beat. Investors are now focused on a new strategic pivot.

The results were weighed down by a sharp drop in financial services income and weaker margins, despite stronger retail demand.

Harley-Davidson Quarterly Report

Harley-Davidson reported quarterly earnings of 22 cents per share. This figure missed the analyst consensus estimate of 28 cents. It represents a sharp decline from $1.07 per share in the prior year.

Quarterly sales reached $1.173 billion. This outperformed the analyst consensus estimate of $1.009 billion. However, revenue fell from $1.329 billion during the same period last year, according to Benzinga Pro.

First-quarter operating income plunged 85%, mainly due to steep declines at Harley-Davidson Motor Company (HDMC) (-84%) and Harley-Davidson Financial Services (HDFS) (-65%), while LiveWire slightly narrowed its loss. The operating margin fell sharply to 2% from 12.1% a year earlier.

Retail Momentum and Inventory Reductions

North American retail sales grew 14% with 23,803 units sold. Global retail sales rose 8%. The company reduced global dealer inventories by 22% compared to the first quarter of 2025.

However, wholesale shipments declined 3%, and the core motorcycle segment’s operating income plunged 84%, reflecting tariff costs, pricing pressures and higher expenses.

Gross margin in the motorcycle segment narrowed to 25.3% from 29.1% a year earlier, while operating margin fell to 1.8%.

“We saw a 14% increase in retail performance in North America,” said Artie Starrs, President and CEO. Starrs noted the company is prioritizing the alignment of wholesale with retail demand.

HDFS was a major drag, with revenue falling 54% and operating income dropping 65% due to a smaller loan portfolio following asset sales.

The “Back To The Bricks” Strategy

The company unveiled its “Back to the Bricks” five-pillar plan. This strategy aims to restore performance and deliver profitable growth.

Harley-Davidson targets over $350 million in HDMC earnings before interest, taxes, depreciation and amortization (EBITDA) by 2027. The company aims for an EBITDA margin between 10% and 12%.

Cash Flow and Share Repurchases

The company repurchased $128 million of shares in the first quarter. It ended the quarter with $1.8 billion in cash. Harley-Davidson also paid $22 million in cash dividends.

Strategic restructuring costs totaled $15 million during the quarter. The company faces a 43% effective tax rate.

Tariffs Bite

During the quarterly earnings call, the company said tariffs cost $45 million in the first quarter and are expected to total $75 million to $90 million in 2026. The impact is expected to decline sequentially through the year, helped by new U.S. tariff exemptions for certain motorcycles, parts and accessories.

Harley-Davidson 2026 Financial Outlook

For the full year 2026, Harley-Davidson reaffirmed its financial outlook.

For 2026, the company reaffirmed its outlook, expecting global motorcycle retail sales and wholesale shipments to range between 130,000 and 135,000 units.

It projects HDMC operating income to fall between a $40 million loss and a $10 million profit, while HDFS is expected to generate $45 million to $60 million in operating income.

LiveWire is forecast to post an operating loss of $70 million to $80 million. Capital investments for Harley-Davidson, Inc. are anticipated to total between $175 million and $200 million for the year.

HOG Price Action: Harley-Davidson shares were up 2.20% at $23.72 at the time of publication on Tuesday, according to Benzinga Pro data.

Photo by Bryan J. Kelly via Shutterstock