Harley-Davidson tops Q2 revenue estimates, raises retail sales outlook

• Motorcycle shipments - Higher global motorcycle shipments and increased North American retail sales drove HDMC revenue growth.
• HDFS revenue drop - HDFS revenue and operating income fell sharply due to lower retail finance receivables after loan asset sales in 2025.
• Gross margin pressure - Gross margin declined due to unfavorable product mix, net pricing, raw materials, and foreign exchange, partly offset by cost improvements and tariff recovery.

The current average analyst rating on the shares is "hold," with 6 "strong buy" or "buy" ratings, 8 "hold" ratings, and 3 "sell" or "strong sell" ratings.

The average consensus recommendation for the auto and truck manufacturers peer group is "buy." Wall Street's median 12-month price target for Harley-Davidson Inc. is $29.00, about 5% above its July 22 closing price of $27.62. The stock recently traded at 22 times the next 12-month earnings versus a P/E of 30 three months ago.

Harley-Davidson said second-quarter revenue fell 6% year over year, but it beat analyst expectations. The US motorcycle maker reported second-quarter net income and earnings per share that declined from a year earlier, driven by lower financial services results.