A month has gone by since the last earnings report for Goodyear (GT Quick QuoteGT - Free Report) . Shares have lost about 9.6% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Goodyear due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for The Goodyear Tire & Rubber Company before we dive into how investors and analysts have reacted as of late.

Goodyear Q2 Loss Wider Than Expected

Goodyear incurred an adjusted loss of 61 cents per share in the second quarter of 2026, wider than the Zacks Consensus Estimate of a loss of 59 cents. The adjusted loss widened 258.8% year over year, translating into a 3.4% earnings miss.

Net sales fell 4.8% year over year to $4.25 billion but topped the consensus estimate of $4.23 billion by 0.6%. Tire unit volume declined 4% to 36.5 million units as lower consumer replacement demand weighed on results, particularly in the Americas.

Total segment operating income declined to $36 million from $159 million a year ago, while segment operating margin contracted to 0.8% from 3.6%. Excluding the impact of the Chemical business and Dunlop brand sales, segment operating income decreased $79 million.

Lower volume reduced segment operating income by $132 million, while tariffs and other costs were a $100 million headwind and inflation reduced results by $53 million. These pressures were partly offset by $123 million of favorable price and mix versus raw materials and $95 million of Goodyear Forward benefits.

Goodyear Americas Faces Replacement Pressure

Americas net sales declined 10.5% year over year to $2.38 billion, while tire unit volume fell 8.7% to 17.4 million. Replacement volume decreased 13% due to lower-tier product rationalization, lower industry sell-in volume in North America and increased competition. OE volume rose 8.7% on market share gains.

The segment posted an operating loss of $10 million against an income of $141 million a year ago, with margin falling to negative 0.4% from 5.3%. Goodyear expects the planned Fayetteville facility closure to improve Americas segment operating income by about $90 million in 2027 and around $270 million annually beginning in 2028.

GT EMEA Improves Despite Soft Replacement Demand

EMEA sales increased 2.1% year over year to $1.37 billion, supported by price and mix and favorable currency effects. Tire unit volume slipped to 11.2 million from 11.3 million, as replacement volume fell 7.1% amid consumer market softness, competition and continued rationalization of lower-tier offerings.

The segment operating loss narrowed to $17 million from $25 million, and margin improved to negative 1.2% from negative 1.9%. OE tire unit volume rose 8.3%, marking the 10th consecutive quarter of consumer market share gains.

Goodyear Asia Pacific Extends Margin Gains

Asia Pacific net sales rose 8.1% year over year to $496 million, aided by higher volume and price and mix benefits. Tire unit volume increased 5.3% to 7.9 million, with replacement volume up 6.4% on stronger consumer demand and OE volume rising 4.2%, mainly on growth in China and Japan.

Segment operating income increased to $63 million from $43 million, while margin expanded to 12.7% from 9.4%. The improvement reflected favorable price and mix versus raw materials, Goodyear Forward savings and higher volume.

Cash Flow Improves as Net Debt Declines

Cash flow from operating activities was $98 million in the second quarter, improving from an outflow of $180 million a year ago. Free cash flow was negative $69 million compared with negative $387 million in the prior-year quarter.

Cash and cash equivalents totaled $861 million as of June 30, 2026, up from $801 million as of Dec. 31, 2025. Net debt stood at $6.33 billion, down from $722 million year over year. During the quarter, Goodyear issued about $1 billion of senior notes and plans to use the proceeds to repay its 2027 senior notes.

Outlook Calls for Higher Price and Mix Benefits

For the third quarter of 2026, Goodyear expects global unit volumes to be roughly flat year over year. Price and mix are projected to provide about $110 million of benefit and Goodyear Forward about $70 million, while raw materials are expected to be a roughly $20 million headwind.

The company also expects about $70 million of unabsorbed overhead pressure, roughly $10 million of tariff headwinds and around $95 million of inflation and other cost increases in the third quarter. For full-year 2026, Goodyear expects about $325 million of Goodyear Forward benefits, capital expenditures of roughly $725 million and interest expense of approximately $425 million.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a flat trend in estimates revision.

The consensus estimate has shifted -69.45% due to these changes.

VGM Scores

At this time, Goodyear has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of A on the value side, putting it in the top quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Goodyear has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.