Ferrari N.V. shares advanced sharply in Tuesday trading, rising approximately 8.6% to $364.92, following the release of robust fourth-quarter financial results and an upward revision of its 2026 outlook. The rally marks a significant rebound for the stock, which had faced pressure since a cautious strategic update last October.
Financial Performance Exceeds Expectations
The Italian luxury carmaker reported full-year 2025 net revenues of 7.146 billion euros, representing a 7% increase. Operating profit grew 12% to 2.11 billion euros, while industrial free cash flow surged 50% to 1.538 billion euros. Notably, these gains were achieved despite a slight decline in annual shipments to 13,640 vehicles from 13,752 the previous year.
For 2026, management now anticipates revenue of approximately 7.5 billion euros with an EBITDA margin target of 39%. The company also highlighted its commitment to shareholder returns, disclosing a recent share repurchase of 53,150 common shares on Euronext Milan for about 15.1 million euros.
Electric Vehicle Timeline Comes Into Focus
Investor attention is increasingly directed toward Ferrari's electrification strategy. The company announced it will open pre-orders in March for its first fully electric model, named the "Luce," with an official presentation scheduled for May 25 in Rome. Chief Executive Benedetto Vigna cited "very positive" client feedback from recent preview events.
Ferrari has adjusted its long-term product mix projection, now anticipating that by 2030, 40% of its vehicles will be combustion models, 40% hybrids, and 20% fully electric. This represents a moderated EV target compared to earlier communications.
The company faces the challenge of maintaining its premium pricing power while introducing new electric technology, particularly amid evolving trade policies and the economic dynamics of the luxury EV segment. Management has emphasized operational discipline in navigating potential headwinds, including U.S. tariff considerations.
With key milestones approaching—including the March pre-order launch, May vehicle premiere, and next earnings report on May 5—investors will be watching closely to see if Ferrari can sustain its momentum and justify its premium valuation through flawless execution of its electrification transition.