On September 17, Ferrari N.V. (NYSE:RACE) announced a partnership with the technology company Rakuten Group, Inc., effective January 1, 2027. The announcement gives no scope and no price tag, so it works better as a signal than as a number. The real substance sits in the results Ferrari posted on July 30, when it raised its 2026 guidance because buyers are ordering more personalization than the company expected.
Profit Is Outrunning Revenue
In the second quarter, revenue rose 8%, but operating profit rose 10%, which means each euro of sales is leaving more behind. Ferrari credits a richer mix of cars, with the F80 helping, along with more buyers paying up for personalization. Strip out currency swings, and the gap widens, with revenue up 11% and operating profit up 16%. Deliveries of the Purosangue and the 296 Speciale family grew even in the middle of a planned model changeover.
Cash and demand back that up. Industrial free cash flow jumped 39% to €276 million, and Ferrari also returned more than €800 million to shareholders through a dividend and buybacks. Racing helped too, as higher sponsorships and engine rentals to other Formula 1 teams lifted revenue. Meanwhile, the order book covers 2027 in full, and the new 12Cilindri Manuale is already fully allocated, which is about as strong a demand signal as a carmaker can send. Those trends are why revenue guidance moved up to about €7.60 billion from about €7.50 billion.
Some Tailwinds Have Expiry Dates
Part of the strength is timing. Operating profit got a boost from temporarily lower depreciation and amortization while Ferrari swaps out models, and the company says those charges will climb once the new cars enter production. Net profit also leaned on a 23.0% tax rate, which reflects an estimated benefit from the new Patent Box. Neither says much about how profitable the cars themselves are.
Costs are climbing too. Higher industrial and marketing expenses weighed on operating profit, EBITDA margin slipped to 39.0% from 39.7% a year earlier, and management expects heavier brand, racing and digital spending for the year. Currency is a drag as well, mostly from the dollar and the yen, which is why 11% growth at constant currency shrank to 8% as reported. Deliveries totaled 3,366 cars while the 296 GTS, Roma Spider and SF90 XX family wound down, and sponsorship, commercial and brand revenue grew just 2%. And the whole outlook leans on current visibility into the Middle East crisis, which Ferrari cannot control.
Funds Drift, Shorts Stay Home
Ferrari counted 41 hedge fund holders in the most recent quarter, down from 43 the quarter before. That is a light trim rather than an exodus. Short interest sits at 2.93% of the float, so little organized money is betting against the stock. Some of that may be hedging, so don’t read too much into it. The forward P/E of 32.57, as of September 18, means investors are pricing in steady growth, even as a couple of big holders step back, so a stumble could be punished.
Fast Car, Full Price
The tension is simple. Ferrari keeps turning each euro of sales into more profit, yet part of that comes from timing and tax, and the stock already carries a premium price. The Rakuten deal, effective January 1, 2027, adds a new name, though its weight is still unknown. Bulls need personalization and mix to keep outpacing rising depreciation and spending, while bears need currency, costs, or the Middle East to bite first.
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