German automotive parts supplier Schaeffler saw its stock price tumble sharply after issuing a new annual profit forecast whose midpoint fell below market expectations.

During early European trading on Tuesday, Schaeffler's share price dropped 18%, erasing all gains made so far this year. Combined with a broader market decline triggered by Middle East conflict, if the loss holds until the close, it would mark the stock's largest single-day percentage decline since March 2020, the peak of COVID-19 uncertainty.

The company projected 2026 revenue in the range of €22.5 billion to €24.5 billion (approximately $26.3 billion to $28.64 billion). According to a compiled market consensus, analysts had previously anticipated revenue of €23.97 billion. Schaeffler's revenue for the previous year was €23.49 billion.

Schaeffler expects its EBIT margin before special items for the current year to be between 3.5% and 5.5%. This compares to a market consensus expectation of 5%. The company achieved a margin of 4% on this metric in 2025.

Analysts at Jefferies noted in a client report that the disappointing guidance appears to be entirely attributable to the performance of its e-mobility division. The division's adjusted EBIT margin is forecasted to be in the range of **-13% to -15%**, with the midpoint of this range falling below market expectations.

The company stated that while the e-mobility business unit remains a growth driver, it is still operating at a loss, though profitability improved last year.

Longer-term, Schaeffler aims to enter high-growth fields such as humanoid robotics and defense. The company's goal is for these new business areas to contribute up to one-tenth of its total revenue by 2035.