Valeo maintains its 2026 targets despite a 2.6% decline in third quarter revenue
On October 22, 2026, Valeo maintained all of its annual targets, including a revenue range of 20 to 21 billion euros, despite lower activity in the third quarter. The detailed publication reveals two opposite movements: original equipment sales declined 3.8% on a constant scope and exchange rate basis, in a market down 1.6%, while the BRAIN division returned to growth (+8.2%). Management presents this rebound as a first step towards the group's return to growth in 2027.
Quarterly sales of 4.9 billion euros, down 2.6%
In the third quarter of 2026, the automotive supplier achieved revenue of 4.9 billion euros, down 2.6% on a constant scope and exchange rate basis. Original equipment, meaning direct sales to manufacturers, accounts for the bulk with 4.1 billion euros.
This activity declined 3.8% on a constant scope and exchange rate basis, while the market posted a 1.6% decline. The group nevertheless reports "continuous outperformance" in North America and Asia excluding China, which indicates that the decline is concentrated in other geographical areas.
The publication came in a tense stock market context: on October 22, 2026 in the morning, Valeo's share price touched 13.41 €, its lowest level in 30 trading sessions, in a Paris market oriented downward.
BRAIN up 8.2%, first milestone towards 2027 growth according to Valeo
The main element of growth in the quarter comes from the BRAIN division, whose sales increased 8.2% on a constant scope and exchange rate basis. Chief Executive Officer Christophe Périllat sees it as "a positive signal" that "lays a first concrete milestone towards the group's return to growth in 2027, third pillar of our Elevate 2028 strategic plan".
The executive also describes "a demanding market environment, whose challenges have intensified over recent months". During its semi-annual publication on July 22, 2026, the group already cited an uncertain geopolitical and macroeconomic environment among its risks.
On the technological front, Valeo announced the day before, on October 21, 2026, an alliance with Nvidia to develop and industrialize high-performance computing platforms intended for level 4 autonomous driving.
Revenue range of 20 to 21 billion euros and operating margin of 4.7% to 5.3% maintained
Valeo confirmed its three targets for fiscal year 2026: revenue between 20 and 21 billion euros, an operating margin of 4.7% to 5.3% of revenue and free cash flow (after net financial interest) above 400 million euros. The group is also targeting, for the second half, an operating margin and free cash flow equivalent to those of the first half.
As a benchmark, Valeo published on April 7, 2026 revenue of 20.9 billion euros for fiscal year 2025. Before the publication, the consensus of surveyed analysts anticipated on average 20.45 billion euros in sales for 2026, a level within the confirmed range.
According to this same consensus, the share is valued at approximately 7.8 times expected earnings for the current fiscal year. Management indicates it is approaching the final quarter with "the same absolute rigor in operational execution and cost management". After nine months, the annual target remains unchanged.
