Volkswagen Group cut its fiscal 2026 operating-margin guidance for the second time in two months, lowering the previous 4.0%-to-5.5% range to no more than 1%. The warning reflects an approximately €6 billion goodwill impairment (an accounting reduction in acquired-asset value) tied to Porsche, roughly €10 billion in total special items and expectations of further significant deterioration in China. Volkswagen shares fell 5.6%, while Porsche declined 3.3% and Porsche SE, Volkswagen's largest shareholder, dropped 4.9%. The group also approved 4,100 additional Porsche job cuts, bringing layoffs announced over the past two years to roughly 13,000. Porsche's 2025 operating profit plunged 92.7% to €413 million, while Volkswagen's fell nearly 54% to €8.9 billion. A broader restructuring involving another 50,000 jobs is underway, alongside plans to launch more than 30 new models in China by the end of 2027 and more than 50 by the end of 2030. The success of that product offensive and the group's structural reforms remains uncertain as Chinese demand, competition and electric-vehicle economics pressure the business.