Did Q3’s Revenue Slide But EPS Beat Just Shift Goodyear’s (GT) Investment Narrative?

• In its past Q3 2025 results, Goodyear Tire & Rubber reported a 3.7% revenue decline year on year and a drop in operating margin to 3.2%, but non-GAAP earnings per share came in very far above analyst expectations.
• This mix of weaker sales and slimmer margins, yet much stronger profit per share than forecast, raises questions about the quality and sustainability of Goodyear’s current profitability.
• We’ll now explore how Goodyear’s stronger-than-expected earnings, despite softer revenue and margins, may influence its existing investment narrative.

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Goodyear Tire & Rubber Investment Narrative Recap

To own Goodyear today, you need to believe that its cost savings and mix shift toward higher value tires can eventually offset soft demand, intense import competition, and tariff inflation. The latest quarter’s revenue decline and margin compression, alongside much stronger non GAAP EPS, do not materially change the near term focus on restructuring benefits as a key catalyst, or the risk that weaker replacement volumes and pricing pressure continue to weigh on the core business.

Against this backdrop, Goodyear’s recent launch of several premium and all terrain tires, including the Eagle F1 All Season and new Wrangler lines, is directly relevant. These products target larger rim sizes and premium segments, which ties into the existing catalyst that a richer mix could help rebuild margins, but the Q3 results remind investors that execution on pricing and volume in a competitive market remains crucial.

Yet despite the earnings beat, investors should still be aware of the risk that rising tariff and manufacturing costs could...

Read the full narrative on Goodyear Tire & Rubber (it's free!)

Goodyear Tire & Rubber's narrative projects $18.3 billion revenue and $405.2 million earnings by 2028. This assumes revenue will decline by 0.4% per year and an earnings decrease of $23.8 million from $429.0 million today.

Uncover how Goodyear Tire & Rubber's forecasts yield a $9.51 fair value, a 7% upside to its current price.

Exploring Other Perspectives

Six fair value estimates from the Simply Wall St Community span roughly US$6.94 to US$1,238.37 per share, underscoring just how far apart individual views can be. Against this spread, the pressure from low cost imports and softer volumes in Goodyear’s core replacement market gives you another angle to weigh when thinking about the company’s longer term earnings power.

Explore 6 other fair value estimates on Goodyear Tire & Rubber - why the stock might be worth 22% less than the current price!

Build Your Own Goodyear Tire & Rubber Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Goodyear Tire & Rubber research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Goodyear Tire & Rubber research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Goodyear Tire & Rubber's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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