Mercedes-Benz Group is scheduled to report results for the second quarter on Tuesday. Here is what you need to know:

REVENUE FORECAST: The German luxury-car company's group revenue is expected at 31.88 billion euros ($36.25 billion), according to a FactSet analyst poll, down from 33.15 billion euros in the same quarter a year prior.

OPERATING PROFIT FORECAST: Operating profit is expected at 1.51 billion euros, up from 1.27 billion euros, according to FactSet.

Shares are down 19% over the past 12 months at 45.17 euros.

WHAT TO WATCH:

--The automaker has guided for 2026 revenue at the prior-year level with EBIT significantly above and cash flow slightly below last year. In its main car unit, it expects unit sales at the prior-year level with an adjusted return on sales of 3%-5%.

--J.P. Morgan analysts expect a second-quarter cars margin within the 3%-5% corridor, excluding any capacity adjustments the company might decide to take in light of the weaker-than-expected Chinese market this year. "We forecast the firm will need to take a gross 15% capacity cut in China in the medium term to realign capacity with demand," J.P. Morgan said. RBC Capital Markets also said it remains cautious on Mercedes' position in China near term, as competition from Chinese manufacturers coupled with declining domestic demand could lead to lower deliveries.

--In Europe, higher fuel prices could weigh on consumer sentiment, RBC said. At the same time, this could accelerate electric-vehicle adoption which would dilute margins, the bank said.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

July 27, 2026 06:37 ET (10:37 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.