Harley-Davidson (NYSE: HOG) saw its shares decline approximately 1% in premarket trading on Thursday after the company reported mixed second-quarter results that fell short on motorcycle deliveries, even as per-share earnings topped Wall Street expectations. The muted market reaction came even as management raised full-year guidance, suggesting investors remain cautious on whether the company's strategic pivot can sustainably reverse years of declining sales among its aging core customer base.

Q2 Financial Results

The Milwaukee-based manufacturer posted second-quarter net profit of $80 million, or $0.75 per diluted share, down from $108 million, or $0.88 per share, in the same period a year earlier. Total revenue fell 6% year-over-year to $1.23 billion.

Despite the year-over-year decline in profitability, the earnings per share figure surpassed analyst consensus by $0.11.

Gross profit margin compressed to 27.5% from 28.6% in the prior-year quarter, driven by higher raw material costs, a less favorable product mix, and unfavorable currency movements.

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$HOG Q2 2026 earnings: Core Business Ignites, Sparking Guidance Raise Harley-Davidson delivered a solid Q2 defined by a 6% revenue growth in its core HDMC segment, snapping a streak of top-line declines. The 6% drop in consolidated revenue is a red herring—driven entirely by the… pic.twitter.com/3hY38V5yDy — Finsee (@Finsee_main) July 23, 2026

Deliveries and Regional Performance

Harley-Davidson shipped 39,200 motorcycles during the quarter, representing 9.4% year-over-year growth but falling short of the Street's consensus estimate of 40,810 units.

Global retail sales edged up 1%. North America posted 3% growth and Latin America gained 4%, while the EMEA region declined 9% and Asia Pacific was flat. The EMEA weakness stands in contrast to growth in the Americas, a region where Harley has historically generated the majority of its sales and where competitive pressure from rivals such as Polaris-owned Indian Motorcycle has intensified in recent years.

Operating profit fell 32%, primarily due to weakness at HDFS, the company's financial services division, which is undergoing a transition toward a more capital-efficient operating model.

"Back to the Bricks" Strategy Under CEO Artie Starrs

Under CEO Artie Starrs, Harley-Davidson has been pivoting away from premium touring motorcycles toward lighter, more accessible models, with entry-level pricing now starting near $10,000.

The company's "Back to the Bricks" strategic initiative centers on reviving classic Harley-Davidson designs while targeting younger riders through smaller-displacement engines — a notable shift from the brand's traditional core customer base. The effort represents the latest in a series of strategic resets aimed at addressing a multi-year challenge: Harley's average rider age has been climbing, and the brand has struggled to recruit younger buyers who face alternatives ranging from cheaper international competitors to electric two-wheelers.

LiveWire Electric Division

LiveWire, Harley-Davidson's electric motorcycle unit that was spun out as a separately traded company via a SPAC merger in 2022, narrowed its operating loss to $18 million from $19 million in the comparable quarter last year.

For the full year, LiveWire projects an operating loss of $70 million to $80 million, with capital expenditures of $175 million to $200 million. The electric motorcycle segment broadly has faced slower-than-expected consumer adoption, and LiveWire's path to profitability remains a closely watched metric for investors assessing Harley's diversification beyond internal combustion.

Raised Full-Year Guidance

Despite the quarterly delivery miss, Harley-Davidson raised its full-year retail sales outlook to a range of 133,500–138,500 units, up from the prior guidance of 130,000–135,000 units.

The HDMC segment's operating income forecast was upgraded significantly to $10 million–$50 million, compared with the previous range of -$40 million to $10 million.

HDFS operating income guidance was also increased to $55 million–$65 million, up from the earlier $45 million–$60 million range.