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REVENUE
 3 Months Ended
Mar. 31, 2026
Revenue from Contract with Customer [Abstract]  
REVENUE REVENUE
The following tables disaggregate our revenue by major source for the periods ended March 31 (in millions):

First Quarter 2025
Company excluding Ford CreditFord CreditConsolidated
Vehicles, parts, and accessories$35,867 $— $35,867 
Used vehicles685 — 685 
Services and other revenue (a)803 18 821 
Revenues from sales and services
37,355 18 37,373 
Leasing income67 1,131 1,198 
Financing income— 2,046 2,046 
Insurance income— 42 42 
Total revenues$37,422 $3,237 $40,659 
First Quarter 2026
Company excluding
Ford Credit		Ford CreditConsolidated
Vehicles, parts, and accessories$37,644 $— $37,644 
Used vehicles1,147 — 1,147 
Services and other revenue (a)953 23 976 
Revenues from sales and services
39,744 23 39,767 
Leasing income75 1,346 1,421 
Financing income— 2,023 2,023 
Insurance income— 42 42 
Total revenues$39,819 $3,434 $43,253 
__________
(a)Includes extended service contract revenue.

The amount of consideration we receive and revenue we recognize on our vehicles, parts, and accessories varies with changes in return rights, marketing incentives we offer to our customers and their customers, and other pricing adjustments. Estimates of marketing incentives and other pricing adjustments are based on our expectation of retail and fleet sales volumes, mix of products to be sold, competitor actions, and incentive programs to be offered. Customer acceptance of products and programs, as well as other market conditions, will affect these estimates. As a result of changes in our estimate of variable consideration (e.g., marketing incentives), we recorded an increase related to revenue recognized in prior periods of $96 million and $259 million in the first quarter of 2025 and 2026, respectively.

We had a balance of $6.2 billion and $6.3 billion of unearned revenue associated primarily with outstanding extended service contracts reported in Other liabilities and deferred revenue at December 31, 2025 and March 31, 2026, respectively. We expect to recognize approximately $1.5 billion of the unearned amount in the remainder of 2026, $1.5 billion in 2027, and $3.3 billion thereafter. We recognized $504 million and $585 million of unearned amounts from prior years as revenue during the first quarter of 2025 and 2026, respectively.

Amounts paid to dealers to obtain extended service contracts are deferred and recorded as Other assets. Our deferred cost balances were $307 million and $306 million as of December 31, 2025 and March 31, 2026, respectively. We recognized $30 million and $27 million of amortization during the first quarter of 2025 and 2026, respectively.