Shares of Magna International (MGA) tumbled 5.71% in pre-market trading on Friday, despite the company posting strong second-quarter results and raising its profit outlook for the full year. The decline was driven by a cut to its 2026 sales guidance, which fell short of Wall Street's expectations.

Magna reported second-quarter sales of $11.0 billion, a 3% increase year-over-year, and record adjusted earnings per share of $1.86, surpassing analyst estimates. The company also raised its full-year outlook for Adjusted EBIT margin, Adjusted EPS, and Free Cash Flow, citing strong operational performance and confidence in continued execution.

However, the company lowered its full-year 2026 total sales guidance to a range of $41.3 billion to $42.5 billion, down from its prior outlook of $41.5 billion to $43.1 billion. The updated sales forecast, reflecting unfavorable foreign exchange impacts and the earlier-than-expected completion of certain divestitures, came in below the FactSet consensus estimate of $42.35 billion, triggering the sell-off in the pre-market session.