Bosch, the world’s largest supplier of automotive components, said on Thursday it expects stronger sales and improved profitability in 2026 as it advances investments in new technologies and implements structural measures that include job reductions.
The German group put a numerical range on its outlook, forecasting sales growth of between 2% and 5% for 2026, up from a 0.7% increase recorded the previous year. At the same time, Bosch indicated it anticipates its operating profit margin will climb to a range of 4% to 6%, compared with an operating margin of 1.8% in 2025.
Management framed the targets as the result of a deliberate strategy to invest in capabilities tied to future demand while also taking steps to improve efficiency and structural costs. "We are committed to shaping the trends of automation, digitalization, electrification, and artificial intelligence," said CEO Stefan Hartung, describing 2026 as a "year of progress" in a company statement.
Bosch highlighted the scale of its near-term spending commitments. Last year the company recorded approximately 12 billion euros in combined research and development costs and capital expenditures. The company said it expects upfront investment in areas it considers important for the future to stay at a similarly high level over the coming years.
The outlook stands in contrast to guidance issued by several German competitors. Schaeffler, Continental and ZF Friedrichshafen have each signaled broadly stable earnings for 2026, citing volatile demand and market conditions as constraints on near-term earnings growth.
Bosch’s combination of continued high investment and structural measures, including workforce reductions, underpins management’s confidence in higher sales and a materially stronger operating margin in 2026. The company did not provide additional numerical detail beyond the ranges and investment commentary in its statement.
Summary
Bosch expects 2-5% sales growth and a 4-6% operating margin for 2026, supported by significant and sustained investments in areas such as automation, digitalization, electrification and artificial intelligence, alongside structural measures including job cuts. The company spent around 12 billion euros on R&D and capital expenditures last year and plans to keep investment levels similarly high.