Porsche reported an operating profit of 1.74 billion euros ($1.94 billion) for the first nine months of 2026, a substantial increase from just 40 million euros during the same period last year, which was impacted by strategic restructuring costs of around 2.7 billion euros.
However, the company experienced a 5.9% drop in sales revenue to 25.28 billion euros and a 16% decrease in vehicle deliveries, totaling 178,532 units. North America has now become Porsche's largest sales region by volume, reflecting a strategic shift as the company faces stiff competition in China from local brands like BYD, Geely, and Xiaomi.
Jochen Breckner, Porsche's CFO, emphasized the importance of a geographically balanced sales strategy, stating that reducing exposure to China has made the business less vulnerable to the challenges in that market. Following the earnings report, Porsche shares rose by 2.3%.
Additionally, the company is implementing a restructuring plan that includes cutting thousands of jobs to manage costs and adapt to declining demand.
Analysts from Citi noted that Porsche's underlying profit remains strong compared to its German luxury peers, with expectations for a return to double-digit operating profit margins by 2028 and a recovery in net cash flow above IPO levels by 2031, despite anticipating that fiscal year 2027 will be a challenging year