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5:55 PM · 5 February 2026

Disaster for Volvo shares. Is this the end of an iconic brand?

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Shares of car manufacturer Volvo plunged by more than 20% today in a single session. This is one of the biggest declines in the company’s history, at the lows, the drop reached as much as 28%. It’s worth noting, however, that for now the sell-off applies only to “Volvo Cars,” the subsidiary responsible solely for passenger car production. “Volvo” itself, which manufactures trucks and buses, has not reacted to the latest market news.

What worried investors?

The results for Q4 2025 were nothing short of disastrous. Profit fell by more than 60% year-on-year and missed investors’ expectations by a wide margin. EPS came in at just 0.43 SEK versus the expected 1.52 SEK.

Revenue also disappointed, though not to the same extent. It declined by several percent year-on-year and totalled 94.4 billion SEK, compared with expectations of around 100 billion SEK.

Management was unable to provide investors with any information that could improve sentiment. Many EV subsidy programs have ended, while margins and sales remain under pressure from foreign competition and trade wars. Company representatives did not try to hide that the past year was difficult, and the next year, 2026 - does not look any better.

VOLVCARB.SE (D1)

 

Source: xStation5
The stock has been in a strong downtrend for years. It only recently staged a rebound and showed signs of a trend change, but after the latest results most of those gains have been erased. The bulls still have the momentum of the EMA averages working in their favor.

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