Finance
Aptiv's quarterly profit falls on higher tax expense
Published by Global Banking and Finance Review
Posted on February 2, 2026
2 min readLast updated: February 2, 2026
Quick Summary
Aptiv's quarterly profit fell due to increased tax expenses, impacting shares. Revenue rose by 5%, but profit forecasts are below expectations.
Aptiv Reports Decline in Quarterly Profit Due to Increased Tax Costs
Aptiv's Financial Performance Overview
Feb 2 (Reuters) - Auto parts supplier Aptiv reported a lower fourth-quarter profit on Monday, hurt by a higher tax expense, sending shares down about 3% in premarket trade.
Impact of Tax Expenses
The Trump administration's move to hike tariffs and pull the plug on tax incentives for electric vehicles has weighed on the industry, at a time when consumers are navigating inflationary pressures and spoiled by cheaper Chinese cars.
Sales and Earnings Forecast
Aptiv supplies wiring systems, high-voltage EV architecture, sensors, software and advanced driver-assistance systems that are crucial for modern vehicles.
Market Reactions
The company's tax expense in the quarter rose to $196 million from $64 million a year ago.
It forecast an adjusted profit per share between $1.55 and $1.75 for the first quarter, lower than analysts' estimates of $1.92, according to data compiled by LSEG.
Aptiv expects its first-quarter sales to be between $4.95 billion and $5.15 billion, largely in line with estimates of $5.03 billion.
During the quarter ended December 31, Aptiv earned a profit of $138 million, or 64 cents per share, compared with $268 million, or $1.14 per share, a year earlier.
Aptiv's revenue in the fourth quarter rose 5% to $5.15 billion from a year ago.
(Reporting by Nathan Gomes in Bengaluru; Editing by Sahal Muhammed)
Key Takeaways
- •Aptiv's quarterly profit decreased due to higher tax expenses.
- •Tax expenses rose to $196 million from $64 million a year ago.
- •Aptiv's adjusted profit forecast is below analysts' estimates.
- •Revenue increased by 5% to $5.15 billion in the fourth quarter.
- •Shares fell by about 3% in premarket trading.
Frequently Asked Questions about Aptiv's quarterly profit falls on higher tax expense
1What is corporate tax?
Corporate tax is a tax imposed on the income or profit of corporations. It is typically calculated as a percentage of the company's taxable income.
2What are tax expenses?
Tax expenses refer to the amount a company must pay in taxes based on its income. This can include federal, state, and local taxes.
