Harley-Davidson’s first quarter saw sales decline and profit margins compress, yet the market responded positively due to the company’s revenue beating Wall Street expectations. Management pointed to the early benefits of a new inventory strategy and renewed dealer partnerships, citing retail momentum in North America and healthier dealer inventory levels. CEO Artie Starrs noted, “Our actions to drive demand and improve execution are beginning to show results, particularly with the 14% retail sales increase in North America.” The company also highlighted reduced global inventory and the rollout of targeted customer incentives as key contributors to recent performance.
Is now the time to buy HOG? Find out in our full research report (it’s free for active Edge members).
Harley-Davidson (HOG) Q1 CY2026 Highlights:
- Revenue: $1.17 billion vs analyst estimates of $996.6 million (11.8% year-on-year decline, 17.7% beat)
- Adjusted EPS: $0.30 vs analyst estimates of $0.22 (38.1% beat)
- Adjusted EBITDA: $68.7 million vs analyst estimates of $61.25 million (5.9% margin, 12.2% beat)
- Operating Margin: 2%, down from 12.1% in the same quarter last year
- Motorcycles Sold: down 1,300 year on year
- Market Capitalization: $2.69 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Harley-Davidson’s Q1 Earnings Call
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Robin Farley (UBS) asked for clarification on the timing and size of expected tariff relief and the definition of “medium term.” CEO Artie Starrs defined medium term as three to five years, and CFO Jonathan Root explained that tariff costs are expected to decline each quarter due to recent regulatory changes, but that exact timing of tariff refunds remains uncertain.
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James Hardiman (Citigroup) questioned how Harley-Davidson’s strategy addresses demographic headwinds and the potential for category decline among younger riders. Starrs responded that the return of the Sportster and the launch of Sprint are specifically aimed at younger and new riders, emphasizing the historical role of such models in growing the brand.
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Joseph Altobello (Raymond James) inquired about the profitability of the Sportster model and expansion into new segments. Starrs said cost improvements and an enterprise profitability model—factoring in parts, service, and used sales—make the new Sportster viable, and teased additional portfolio expansions based on rider feedback.
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Andrew Didora (Bank of America) sought details on HDFS’s future income mix and the impact of its new fee-based business model. Root explained that HDFS will retain a third of new loan originations, shift towards more fee and service income, and maintain focus on supporting motorcycle sales and dealer financing.
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Molly Baum (Morgan Stanley) asked about affordability and promotional dynamics. Starrs described a shift toward a broader, more accessible product lineup that reduces reliance on promotions, with ongoing efforts to tailor offerings to customer needs and preserve healthy margins.
Catalysts in Upcoming Quarters
In the quarters ahead, our team will monitor (1) the initial reception and sell-through of the new Sportster and Sprint models, (2) continued progress on dealer inventory management and profitability, and (3) the effectiveness of targeted marketing and parts and accessories integration. We will also track regulatory shifts affecting tariffs and the company’s capacity to deliver on its cost reduction targets as further signs of execution.
Harley-Davidson currently trades at $25.48, up from $23.21 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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