Ferrari Shares Climb 1.82% Despite 445th Volume Ranking as Earnings and Raised Guidance Drive Optimism

Market Snapshot

On November 5, 2025, Ferrari N.V. (RACE) closed with a 1.82% gain, marking a price increase of $0.06 to $399.63. Despite a significant 52.21% drop in daily trading volume to $0.30 billion, the stock ranked 445th in volume among all equities, reflecting reduced liquidity compared to the prior day. The price action followed the company’s third-quarter earnings report, which highlighted robust revenue growth and revised full-year guidance.

Key Drivers

Ferrari’s Q3 2025 earnings report underscored strong financial performance, with total revenue rising 7.4% year-over-year to €1.8 billion. This growth was driven by a favorable product mix, particularly in high-margin models like the 12Cilindri and SF90 XX, as well as increased personalization services, which accounted for 20% of car and spare part revenues. Earnings before interest and taxes (EBIT) exceeded €500 million, while EBITDA margin reached 37.9%, and EBIT margin stood at 28.4%. These metrics demonstrated the company’s ability to maintain pricing power and operational efficiency despite macroeconomic headwinds.

The company raised its 2025 guidance above prior 2026 targets, signaling confidence in sustained demand. Management attributed this optimism to a robust order book extending into 2027, supported by upcoming model launches such as the 849 Testarossa family and the Amalfi line. Ferrari also outlined a long-term product roadmap, planning to release an average of four new models annually between 2026 and 2030 across internal combustion engine, hybrid, and electric powertrains. This diversification strategy aims to attract a broader clientele while maintaining its luxury brand positioning.

However, the report highlighted near-term challenges. The company cited incremental U.S. import tariffs, foreign exchange headwinds, and lower deliveries of certain models (e.g., Daytona SP3) as factors that dampened Q3 performance. Deliveries in Q4 2025 are expected to decline year-over-year due to a major model transition cycle. Additionally, concerns linger over potential order cancellations in the U.S. market amid shifting consumer behavior and residual value pressures. Despite these risks, management emphasized that its pricing power remains intact, with plans to innovate through tailored features and hybrid offerings to justify premium pricing.

The stock’s positive reaction—up 2.71% in pre-market trading—contrasted with missed earnings and revenue forecasts. While Q3 EPS of $2.14 and revenue of $1.77 billion fell short of expectations, investors focused on the revised guidance and long-term growth plans. Ferrari’s industrial free cash flow of €365 million and reduced net industrial debt of €116 million by year-end further reinforced its financial discipline. Analysts noted that the company’s ability to balance short-term delivery challenges with long-term innovation and profitability positioned it to outperform broader luxury sector benchmarks, such as the FTSE MIB Index.

Looking ahead, Ferrari’s strategic focus on expanding personalization services, accelerating new model rollouts, and navigating macroeconomic risks will be critical to sustaining its premium valuation. The company’s 2030 targets—€9 billion in revenue, 40% EBITDA margin, and 30% EBIT margin—reflect an ambitious growth trajectory, contingent on successful execution of its electrification and hybrid strategies. For now, the stock’s resilience underscores investor confidence in Ferrari’s brand strength and ability to adapt to evolving market dynamics.