Ferrari Reports Strong Earnings, Boosting Investor Confidence
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 28 2026
0mins
Should l Buy RACE?
Source: Fool
Ferrari shares rose 7.31% in pre-market trading, reaching a 5-day high, following the release of its FY 2023 earnings report.
The company reported a Non-GAAP EPS of €8.96, exceeding expectations by €0.01, and annual revenue of €7.15 billion, a 7% increase year-over-year. This strong performance, along with an operating profit of €2.11 billion and a 50% increase in free cash flow, has significantly bolstered investor confidence and alleviated concerns about profit margins for the current year.
The positive earnings report and guidance have led to a notable recovery in stock performance, indicating a strong outlook for Ferrari as it continues to demonstrate robust financial health.
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Analyst Views on RACE
Wall Street analysts forecast RACE stock price to rise
15 Analyst Rating
11 Buy
3 Hold
1 Sell
Moderate Buy
Current: 374.990
Low
349.74
Averages
448.83
High
555.00
Current: 374.990
Low
349.74
Averages
448.83
High
555.00
About RACE
Ferrari NV, known as Ferrari, is an Italy-based designer, manufacturer and retailer of sports cars that is incorporated in the Netherlands. It operates under the Ferrari brand. Its sports cars portfolio includes, among others, F12berlinetta, FF, Ferrari 488 GTB, 488 Spider, 458 Speciale, Ferrari California T, F12tdf and LaFerrari. The Company also offers financing services through Ferrari Financial Services. It also produces limited series and one-off cars. The Company divides its regional markets in EMEA (Europe, the Middle East, India and Africa), Americas, Greater China and Rest of APAC (Asia-Pacific region, excluding Greater China) and is active in over 60 markets worldwide through a network of authorized dealers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strategic Importance of Elettrica: The upcoming full-electric model, Elettrica, will be pivotal for Ferrari's EV strategy, as entering the market too quickly could incur high adjustment costs, while delaying could risk missing the opportunity to cultivate future enthusiasts, reflecting a cautious approach to the EV market.
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- Hybrid Sales Growth: In 2022, Ferrari's sales comprised 78% internal combustion engines and 22% hybrids; by the first half of 2025, hybrids accounted for 45%, indicating the company's proactive shift towards electrification, enhancing its competitive position in the market.
- Margin Improvement: Despite full-electric vehicles being less profitable than gasoline counterparts, Ferrari's growth in hybrid sales has not hindered its margin gains, which continue to rise, reflecting the company's ability to maintain profitability during its electrification journey and boosting investor confidence.
- EV Strategy Planning: Ferrari is assessing the timing for launching its first full-electric vehicle, the Elettrica, as entering the full-EV market too quickly could lead to costly adjustments later, while being too late might miss opportunities to cultivate future consumers, showcasing its cautious approach to electrification strategy.
- Market Opportunity Emerges: Although Ferrari's stock is generally priced at a premium, recent declines in its price-to-earnings ratio due to underwhelming guidance have created a relatively undervalued buying opportunity for investors, potentially positioning it as an unexpected quality choice in the EV investment landscape.
See More
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- Spotify User Growth: Spotify added 29 million paid subscribers this quarter, with Monthly Active Users (MAU) growing 11% year-over-year, demonstrating its appeal in a competitive market; despite a 4% decline in ad revenue, its operating margin exceeding 15% indicates significant progress in profitability.
- Datadog Financial Performance: Datadog reported nearly 30% year-over-year sales growth in Q4, and despite facing AI competition pressures, management emphasized that AI-driven innovations will help attract more complex customers, suggesting resilience in its business model amid current challenges and potential for higher future charges.
- Ferrari Market Reaction: After experiencing a record stock price drop, Ferrari's Q4 earnings revealed strong performance, with shares rising about 10%, and management reaffirmed that its order book extends into 2027, indicating sustained brand appeal and pricing power in the luxury market.
- Industry Outlook: Despite concerns about AI disruption in the software sector, analysts believe that strong management teams and innovation capabilities will enable Spotify, Datadog, and Ferrari to maintain competitive advantages in the evolving consumer demand and technological landscape.
See More
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- Buyback Program Launch: Ferrari has initiated a multi-year share buyback program valued at approximately €3.5 billion, with the first tranche amounting to €250 million, reflecting the company's confidence in future growth prospects.
- Shares Repurchased: As of February 13, 2026, Ferrari has repurchased a total of 276,643 common shares on Euronext Milan and NYSE, with an invested total consideration of €81,975,746.99, thereby enhancing shareholder value.
- Increased Holdings: As of February 13, 2026, Ferrari holds 16,921,249 common shares in treasury, representing 8.73% of the total issued common shares, and including special voting shares, the treasury stock percentage rises to 9.18%, indicating strong confidence in its own stock.
- Transaction Transparency: Ferrari provides a comprehensive overview of the buyback transactions on its corporate website, ensuring investors have access to detailed information, which enhances market trust in the company's governance.
See More
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- Successful Rocket Launch: The French president celebrated the successful launch of Europe's most powerful rocket, which deployed 32 Amazon Leo satellites into orbit, marking a significant advancement in Europe's space capabilities and enhancing its competitiveness in the global space market.
- Pause on Tech Security Measures: Ahead of the Trump-Xi Jinping meeting, the Trump administration reportedly paused several critical technology security measures targeting China, a decision that could influence the future trajectory of U.S.-China tech relations and reduce market uncertainties.
- Apple Court Victory: Apple secured a courtroom win as a jury rejected claims from Optis Wireless that it infringed on 4G wireless patents, a result that will help protect Apple's intellectual property and strengthen its market position.
- AI Industry Developments: Elon Musk criticized AI startup Anthropic for alleged bias while announcing a $30 billion funding round that pushed its valuation to $380 billion, highlighting the intense competition and rapid evolution within the AI sector.
See More
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- Accelerated Electrification: In the first half of 2025, Ferrari's hybrid vehicle shipments reached 45%, a significant increase from 22% in 2022, indicating rapid progress in its electrification strategy and enhancing its competitive edge in the future market.
- Profitability Gains: While full-electric vehicles remain less profitable than traditional gasoline models, Ferrari's hybrid offerings have maintained a high gross margin of 58.25% even as shipment volumes increase, demonstrating that its electrification strategy does not compromise overall profitability.
- Unique Market Positioning: With strong product demand and exceptional profit margins, Ferrari stands out as a unique competitor in the EV market; despite its stock being priced higher than mainstream automakers, it continues to attract investor interest, reflecting confidence in its future growth.
- Future EV Plans: Ferrari is actively preparing for the launch of its first full-electric vehicle, the Elettrica, and while there are differing opinions on the timing of its release, successfully entering the full-EV market will be crucial for Ferrari's future development and may attract a new generation of consumers.
See More
Ferrari's Potential in the Electric Vehicle Market
- EV Market Share Shift: In 2022, Ferrari's shipments consisted of 78% internal combustion engines and 22% hybrids, but by the first half of 2025, this has shifted to approximately 55% internal combustion and 45% hybrids, indicating a proactive approach to EV transition despite profitability challenges for full-electric vehicles.
- Hybrid Profitability Gains: As Ferrari accelerates its hybrid vehicle shipments, it continues to enhance profitability, suggesting that its strategic positioning in the EV market not only maintains profit growth but also lays a foundation for future full-electric models.
- Strategic Importance of Elettrica: The upcoming full-electric model, Elettrica, will be pivotal for Ferrari's EV strategy, as entering the market too quickly could incur high adjustment costs, while delaying could risk missing the opportunity to cultivate future enthusiasts, reflecting a cautious approach to the EV market.
- Investment Timing and Market Positioning: Although Ferrari's stock is priced at a premium compared to mainstream automakers, recent low price-to-earnings ratios present an opportunity for investors, and given its strong brand demand and competitive advantages, Ferrari may be an overlooked potential stock in the EV sector.
See More
Ferrari's Surprising Shift Towards Electrification
- Hybrid Sales Growth: In 2022, Ferrari's sales comprised 78% internal combustion engines and 22% hybrids; by the first half of 2025, hybrids accounted for 45%, indicating the company's proactive shift towards electrification, enhancing its competitive position in the market.
- Margin Improvement: Despite full-electric vehicles being less profitable than gasoline counterparts, Ferrari's growth in hybrid sales has not hindered its margin gains, which continue to rise, reflecting the company's ability to maintain profitability during its electrification journey and boosting investor confidence.
- EV Strategy Planning: Ferrari is assessing the timing for launching its first full-electric vehicle, the Elettrica, as entering the full-EV market too quickly could lead to costly adjustments later, while being too late might miss opportunities to cultivate future consumers, showcasing its cautious approach to electrification strategy.
- Market Opportunity Emerges: Although Ferrari's stock is generally priced at a premium, recent declines in its price-to-earnings ratio due to underwhelming guidance have created a relatively undervalued buying opportunity for investors, potentially positioning it as an unexpected quality choice in the EV investment landscape.
See More
