Ferrari (RACE) is trading higher today after reporting first-quarter 2026 results that underscored strong profitability and cash generation. The company posted net revenues of €1.848 billion and operating profit (EBIT) of €548 million, translating to a 29.7% EBIT margin, while EBITDA reached €722 million for a 39.1% margin. Ferrari also reaffirmed its 2026 guidance, reinforcing confidence that earnings power remains intact despite planned model changeovers and a high-end production cadence.

Beyond headline revenue growth, the market focus is on mix-led margin strength and cash flow. The quarter featured rich product mix and personalization, helping offset lower volumes, and the company ended the period with a net industrial cash position cited at €388 million in market summaries of the release. With full-year targets reiterated (including net revenues around €7.5 billion and an adjusted EBITDA margin of at least 39%), investors are treating the print as a confirmation that Ferrari can protect margins even when shipments are managed to support launches.

Ferrari emphasized demand visibility with an order book extending toward the end of 2027, a data point that tends to support premium multiples in luxury autos because it reduces near-term uncertainty. Separately, ongoing repurchases remain a supporting factor: Ferrari has an active multi-year buyback program, with a €250 million tranche underway in 2026, which can provide incremental demand for shares alongside fundamental strength.