Ferrari Stock Shifts Higher as the Prancing Horse Delivers on Profit. Here’s More Good News

Ferrari stock rose about 1% after the automaker beat earnings and revenue expectations. The company also reaffirmed its full-year outlook, easing investor concerns following last month’s sharp selloff.

Ferrari shares (RACE) edged up about 1% in premarket trading Tuesday after the company posted stronger-than-expected earnings and revenue. The results come at a critical time for the automaker, which has spent weeks trying to calm investors after an underwhelming Capital Markets Day.

The modest bounce in shares signals investors are refocusing on the company’s fundamentals, and not the recent volatility around its electric-vehicle plans. Additionally, analysts are still broadly positive on Ferrari’s long-term strategy, and this quarter’s performance gives the brand a chance to regain momentum heading into the final stretch of the year.

Ferrari Beats on Profit and Sales

Ferrari reported earnings of €2.14 per share and revenue of €1.77 billion. Both figures came in above consensus estimates, with analysts expecting €2.06 in earnings per share and €1.70 billion in revenue. That marks a 7% year-over-year revenue increase, helped by stronger product mix and pricing power across its hybrid and custom vehicle lines.

The results reflect Ferrari’s ability to manage costs and maintain pricing discipline even as global luxury demand softens. Investors tend to reward this type of consistency, especially when most automakers are juggling shifting consumer preferences and higher input costs.

Shipments Stay Flat but Margins Stay Firm

Ferrari shipped 3,401 vehicles during the quarter, up 1% from last year. Shipments climbed 2% in Europe, the Middle East, and Asia, while the Americas slipped 2% due to U.S. tariffs. While volume growth was modest, the company’s strategy isn’t about chasing unit sales; it’s about protecting exclusivity and premium pricing.

Ferrari’s discipline continues to pay off. By focusing on mix and customization, Ferrari keeps margins robust even in slower markets. Investors view this as proof that Ferrari can balance low-volume output with high-profit returns. This is a formula that sets it apart from mass-market automakers.

Ferrari’s Full-Year Guidance Stays Intact

The company reaffirmed full-year guidance of €8.80 in adjusted earnings per share on €7.1 billion in revenue, signaling confidence in its order pipeline and cost management. Keeping targets steady after a volatile few weeks reassures investors that demand remains healthy and execution is on track.

For a company like Ferrari, consistency carries weight. Its backlog of high-end buyers remains strong, with wait times stretching beyond a year for certain models. This is a sign of resilience even amid global uncertainty.

After Elettrica Jitters, Stability Returns

The October selloff following the Elettrica EV reveal shook investor sentiment. Ferrari stock dropped 16% in a single day, its worst decline since going public, after the event failed to impress investors. The issue wasn’t the car itself but weaker long-term financial targets. This earnings beat begins to mend that trust, showing Ferrari’s near-term business remains strong.

Looking ahead, investors will watch how the Elettrica fits into Ferrari’s broader strategy as hybrid models continue to dominate sales.

Is RACE a Good Stock to Buy?

Based on 14 Wall Street analysts who issued ratings over the past three months, Ferrari stock is rated a Strong Buy. The consensus includes 12 Buy ratings, one Hold, and one Sell. Analysts have set an average 12-month RACE price target of $490.10, suggesting a 25% upside from the current price.

See more RACE analyst ratings