Volvo AB unsponsored ADR class B lowered its financial targets for the 2026 fiscal year on Thursday, citing the complex market environment and global trade war uncertainty. The day before, the company announced that it was giving up the plan to only sell pure electric cars by 2030.
Volvo indicated that it now expects the pre-tax profit margin for 2026 to reach 7%-8%, lower than the previous target of over 8%.
The company also revised its revenue target, choosing to measure success by whether it outperforms the high-end car market by 2026. Previously, the company aimed to achieve revenue of 550 billion to 600 billion Swedish kronor (approximately 53.43 billion to 58.28 billion U.S. dollars) by 2026.
Also on Thursday, ahead of a meeting with investors and analysts, Volvo announced an expanded partnership with Nvidia, stating that the new electric cars will utilize a single, flexible software platform to reduce costs.