Earnings Analysis November 5, 2026

Ferrari NV ($RACE) Q3 2026 Earnings Analysis: Revenue and Profit Beat Expectations, Annual Guidance Raised Again

Earnings Report

Revenue: €1.896 billion (up 7% YoY, vs. $1.893 billion expected) ✅ Beat

EPS (Earnings Per Share): €2.44 (vs. €2.14 YoY, vs. $2.32 expected) ✅ Beat

Guidance: Upward revision. Annual revenue of approximately €7.65 billion, adjusted EBITDA of over €3 billion (39.2% margin), adjusted EPS of over €9.85, and industrial free cash flow of up to €1.65 billion

Stock Reaction: +2.9% (based on BMO closing price for the day)

What Went Well

Product Mix: F80 deliveries and personalization expansion drove revenue up by 7% (€1.896 billion)

Margins: Operating income (EBIT) was €563 million, with an operating margin of 29.7%, up 1.3 percentage points from a year ago

Cash: Industrial free cash flow increased by 43% to €567 million, and net industrial cash also turned positive at €219 million

A structure was confirmed where the company earns more even with fewer car sales. EBITDA recorded €753 million with a 39.7% margin. As customers opted for higher-end specifications, revenue and profit per unit rose together, offsetting the volume decline with growth in revenue and profit.

What Was Lacking

Shipment Decline: 3,368 units, down 33 units from 3,401 units in the same period last year

Weakness in China: 143 units in China, Hong Kong, and Taiwan, a 42% decrease from 248 units a year ago

Increased Costs: Increases in depreciation and marketing expenses partially offset the growth in operating income

The volume decline due to model transitions is a trend the company had previously signaled. However, currency effects from the weakness of the dollar and yen acted negatively on net revenue, and increased depreciation costs from the start of new model production limited the extent of profit growth.

What the Company Said

CEO Benedetto Vigna stated that F80 deliveries and personalization supported growth. The company raised its annual outlook, citing stronger-than-expected personalization, reduced currency headwinds, and securing second place in the Formula 1 Championship.

Market Reaction and Future Key Points

Shares fell immediately after the announcement but reversed to close higher. RBC Capital Markets assessed that while earnings generally met expectations, expectations for the scale of the guidance upward revision were even higher.

It is necessary to confirm whether the two new model launches in Q4 will extend the order backlog beyond 2028

A key point to watch is whether shipments in China, Hong Kong, and Taiwan rebound from the 143 units seen in Q3

The key will be whether the company can maintain an annual operating margin above 29.8% amid increasing depreciation expenses

Earnings Call Summary

Once the earnings call concludes and the company script is released, the key takeaways from the call will be added here. We will select and summarize only the most important details, such as how management explained performance and outlook, and what analysts inquired about.