TSLA · Q2 FY2026
Tesla, Inc. Q2 FY2026 earnings analysis
By SageNoodle ResearchBearish
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $28.24B | $25.50B (yr ago) | Beat |
| EPS | $0.32 | $0.40 (yr ago) | Miss |
| Free Cash Flow | -$1.09B | $1.34B (yr ago) | Miss |
| Gross Margin | 16.8% | 18.0% (yr ago) | Miss |
| Operating Margin | 1.4% | 6.3% (yr ago) | Miss |
What changed
Revenue increased 10.7% year over year to $28.24 billion, but the additional sales did not translate into stronger profitability. Gross margin declined 1.2 percentage points, operating margin fell 4.9 points, and free cash flow swung from positive $1.34 billion to negative $1.09 billion.
Impact on the investment thesis
There was no prior SageNoodle fair value to revise; we establish post-quarter fair value at $234 per share. The quarter supports a cautious valuation because higher revenue coincided with weaker margins and cash conversion.