Luxury carmaker Ferrari (RACE) has reported a 17% year-over-year increase in its first-quarter profit, but warned of looming impacts from U.S. import tariffs.
The Italian automaker known for its distinctive red and black sports cars posted a net profit of 412 million euros (US$466.3 million) for the first three months of the year, a 17% jump from the same period of 2024. The result exceeded the profit of 410 million euros expected among analysts.
Revenue during the quarter totaled 1.79 billion euros (US$2.03 billion). Sales were up 13% from a year earlier as the company delivered 3,593 vehicles during the first three months of 2025. “Another year is off to a great start,” said Ferrari CEO Benedetto Vigna in the company’s earnings statement.
Trouble Ahead
Despite the strong Q1 print, Ferrari warned of trouble ahead, saying that the introduction of U.S. import tariffs on European-made cars could negatively impact its profitability this year. “The 2025 guidance is subject to a potential risk,” said the company in its earnings report.
That guidance includes revenue of more than 7 billion euros (US$7.93 billion), earnings of at least 2.68 billion euros (US$3.04 billion), and earnings per share of 8.60 euros (US$9.74). Ferrari said in late March that it would raise prices for its luxury vehicles by 10% on certain models in response to U.S. tariffs. The move could add up to $50,000 to the price of a typical Ferrari vehicle.
RACE stock has risen 13% this year.
Is RACE Stock a Buy?
The stock of Ferrari has a consensus Moderate Buy rating among 15 Wall Street analysts. That rating is based on 10 Buy, four Hold, and one Sell recommendation issued in the last 12 months. The average RACE price target of $522.76 implies 10% upside from current levels. These ratings are likely to change after the company’s earnings.
