Ferrari N.V. (NYSE:RACE) shares declined Tuesday after the luxury automaker reported fiscal first-quarter 2026 results and reaffirmed its full-year guidance.

The Italian carmaker posted revenue of 1.85 billion euros ($2.16 billion), up 3% from a year earlier and above the analyst consensus estimate of $2.12 billion. Earnings per share came in at 2.33 euros ($2.73), topping expectations of $2.70.

Segment Performance and Margins

Revenue from cars and spare parts rose 1% year over year, driven by a richer sports-car mix and higher personalization. Sponsorship, commercial and brand revenue increased 14%, supported by stronger sponsorships and lifestyle activities.

Total shipments declined 4.4% to 3,436 units as Ferrari managed deliveries during a planned model transition.

The company said deliveries "were not impacted by the surge of hostilities in the Middle East, as Ferrari leveraged its geographical allocation flexibility, bringing forward certain deliveries to other regions."

EBITDA rose 4% to 722 million euros, while the margin expanded 40 basis points to 39.1%. Net profit was almost flat at 413 million euros.

Operating cash flow totaled 863 million euros, and free cash flow reached 610 million euros. Ferrari reported net industrial cash of 388 million euros as of March 31, compared with net industrial debt of 32 million euros at the end of 2025. Cash and equivalents stood at 1.86 billion euros.

Strategy and Operations

Ferrari said performance was supported by strength across segments and remained in line with its full-year outlook despite geopolitical pressures.

The company improved product mix and personalization in its core sports car segment while intentionally reducing deliveries. Shipments increased for models including the 12Cilindri, Purosangue and SF90 XX. Ferrari also ramped up production of the F80 supercar and launched new models such as the Amalfi Spider.

Beyond vehicles, Ferrari reported higher racing revenue from sponsorships and engine rentals to Formula 1 teams. Its lifestyle segment expanded through licensing initiatives, a new flagship store in London and exhibitions at its Modena museum.

Executive Commentary

Chief Executive Officer Benedetto Vigna said a richer product mix and strong demand for personalization supported earnings. He added that the company's order book extends into late 2027, underpinning its 2026 guidance.

Vigna told CNBC that demand is building ahead of the Ferrari Luce world premiere, with the launch event fully booked. He said customer response will ultimately determine the model's success.

During the quarterly earnings call, Vigna said that despite temporary logistics challenges in the Middle East, the company has implemented alternative solutions to continue serving clients in the region.

He added that Ferrari kept deliveries flat year over year in the Middle East during the first quarter and is not seeing any unusual or abnormal order cancellations.

Ferrari Outlook

Ferrari reiterated its fiscal 2026 revenue forecast of about 7.5 billion euros (or $8.731 billion), below the analyst consensus of $8.88 billion. The company expects adjusted earnings per share of at least 9.45 euros (or $11.00), compared with estimates of $11.35.

The company said its guidance incorporates current visibility on the Middle East crisis, which it continues to manage actively.

RACE Price Action: Ferrari shares were down 4.35% at $333.62 at the time of publication on Tuesday, according to Benzinga Pro data.

Photo via Shutterstock