Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Tesla's second quarter of fiscal 2026 was defined by a 25% surge in automotive deliveries that drove strong top-line growth, while a doubling down on AI and manufacturing expansion sent operating expenses sharply higher. Management attributed the revenue gains to higher volumes and FSD (Supervised) subscription adoption, but R&D and SG&A grew 49% and 45% respectively, reflecting investments in autonomy, robotics, and new production lines. The resulting 56.9% decline in operating income to $398 million was partly offset by a $274 million tax valuation allowance release, leaving net income nearly flat. The period underscores a tension between aggressive long-term bets and near-term profitability, with cash from operations of $8.6 billion year-to-date largely absorbed by $8.3 billion in capital expenditures.
Revenue
$28.24B
+25.52% YoY
EPS (Diluted)
$0.32
-3.03% YoY
Gross Margin
16.8%
-0.4 pts YoY
Operating Income
$398M
-56.88% YoY
Source: SEC XBRL
Tesla (TSLA) reported Q2 FY2026 revenue of $28.24B, up 25.5% year over year. Operating margin was 1.4%, down 2.7 points from 4.1% a year earlier. TSLA's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 2 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 0.33 | 0.52 | Miss -36.4% |
| Mar 2026 | 0.41 | 0.38 | Beat +8.7% |
| Dec 2025 | 0.50 | 0.45 | Beat +10.1% |
| Sep 2025 | 0.50 | 0.56 | Miss -10.5% |
Adjusted (non-GAAP) EPS of $0.33 versus the $0.52 analyst consensus — a -36.4% miss for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $0.32.
2 reported segments · SEC XBRL
Segment revenue totals $28.24B, which is the $28.24B of consolidated revenue on the income statement. The profit column adds up to the consolidated figure as well.
Profit above is reported as gross profit, the measure TSLA itself discloses in this filing. Each company chooses its own measure here, so these margins are not comparable with another company's.
Compiled by AI from 10-Q Item 2 of this filing
Automotive sales revenue increased 27% year-over-year due to a roughly 25% increase in cash deliveries, higher average selling price from sales mix and FSD (Supervised) subscription revenue, and favorable currency effects.
Source: 10-Q Item 2 MD&A
Automotive regulatory credits revenue fell 67% to $146 million, impacted by supply constraints and recent governmental actions restricting certain credit programs.
Source: 10-Q Item 2 MD&A
Energy generation and storage gross margin dropped to 20.4% from 30.3%, primarily due to lower average selling prices for Megapack, unfavorable sales mix, and higher warranty adjustments.
Source: 10-Q Item 2 MD&A
R&D expense rose 49% to $2.37 billion, driven by AI programs and higher stock-based compensation; SG&A grew 45% to $1.98 billion, largely from a $283 million increase in stock-based compensation related to the 2025 CEO Performance Award.
Source: 10-Q Item 2 MD&A
A $274 million income tax benefit from releasing a California deferred tax valuation allowance partially offset the operating income decline, lowering the effective tax rate to 15% from 23%.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
R&D and SG&A expenses grew at 49% and 45% respectively, far outpacing revenue growth, causing operating margin to shrink from 4.1% to 1.4%. Continued heavy investment in AI, robotics, and new factories may keep margins under pressure.
Source: 10-Q Income Statement (XBRL)
Management warns that rapidly evolving trade and fiscal policy, including tariffs, could meaningfully increase supply chain costs and impact demand, particularly for the energy storage business.
Source: 10-Q Item 2 MD&A
Regulatory credit revenue, a high-margin income stream, fell 67% this quarter. Future regulatory changes or reduced demand from other automakers could further erode this income source.
Source: 10-Q Item 2 MD&A
Capital expenditures are expected to exceed $25 billion in 2026, driven by AI infrastructure and factory expansions. This may outstrip operating cash flow, necessitating external financing or reducing liquidity.
Source: 10-Q Item 2 MD&A
Energy storage gross margin fell 9.9 percentage points to 20.4% due to pricing pressure and warranty costs, highlighting the segment's sensitivity to execution and input cost fluctuations.
Source: 10-Q Item 2 MD&A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 28.24 $B | 22.50 $B | +25.52% |
Cost of Revenue $B | 23.49 $B | 18.62 $B | +26.14% |
Gross Profit $B | 4.75 $B | 3.88 $B | +22.51% |
Operating Income $M | 398.00 $M | 923.00 $M | -56.88% |
Net Income $B | 1.11 $B | 1.17 $B | -4.95% |
EPS (Basic) $ | 0.34 $ | 0.36 $ | -5.56% |
EPS (Diluted) $ | 0.32 $ | 0.33 $ | -3.03% |
R&D Expense $B | 2.37 $B | 1.59 $B | +49.21% |
SG&A Expense $B | 1.98 $B | 1.37 $B | +45.10% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
Tesla's Q1 2026 10-Q shows a strong rebound with revenue up 15.8% YoY to $22.4B, gross margin expanding nearly 5 percentage points to 21.1%, and operating income surging 135.8% to $941M, though net income of $477M reflects elevated R&D and SG&A spending.
Tesla's FY2025 revenue declined 2.9% to $94.8B while net income fell 46.5% to $3.8B, as surging R&D costs (+41.2%) and pricing pressures compressed operating margins to 4.6% from 7.2% the prior year.
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