What Happened?

Shares of global tire manufacturer Goodyear (NYSE: GT) fell 13.5% in the morning session after the company reported mixed fourth-quarter 2025 results that featured a significant miss on profitability. 

While the tire manufacturer's revenue of $4.92 billion was flat year-over-year and narrowly topped Wall Street's expectations, its earnings per share (EPS) told a different story. The company's GAAP profit came in at $0.36 per share, falling 41% below analysts' consensus estimates of $0.61. This substantial earnings miss appeared to be the primary driver for the negative investor reaction, overshadowing the slight revenue beat and year-over-year improvements in operating and free cash flow margins. The market's sharp response suggests investors are prioritizing profitability, and the weaker-than-expected bottom line raised concerns about the company's financial health.

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What Is The Market Telling Us

Goodyear’s shares are very volatile and have had 22 moves greater than 5% over the last year. But moves this big are rare even for Goodyear and indicate this news significantly impacted the market’s perception of the business.

Goodyear is flat since the beginning of the year, and at $8.93 per share, it is trading 25.3% below its 52-week high of $11.94 from June 2025. Investors who bought $1,000 worth of Goodyear’s shares 5 years ago would now be looking at an investment worth $637.96.

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