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RIVN · Q2 FY2026

Rivian Automotive, Inc. / DE Q2 FY2026 earnings analysis

By SageNoodle ResearchNeutral
Reported results versus estimates
MetricActualEstimateResult
Revenue$1.658B$1.303B (yr ago)Beat
EPS-$0.63-$0.97 (yr ago)Beat
Free Cash Flow-$849M-$398M (yr ago)Miss
Gross Margin10.8%-15.8% (yr ago)Beat
Operating Margin-50.4%-85.5% (yr ago)Beat

What changed

Revenue increased 27.2% year over year, consolidated gross margin reached 10.8%, and the operating loss narrowed by $278M despite higher R2 launch spending. The improvement depended partly on $108M of regulatory-credit revenue and Volkswagen-related software work, while free cash outflow more than doubled to $849M as Rivian built inventory for R2.

Impact on the investment thesis

There was no prior SageNoodle fair value to revise; we establish fair value at $16.00 per share. Better margins and guidance are offset by continued heavy cash consumption and dilution from the July equity offering.

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