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Ferrari recently experienced a setback at its home Italian Grand Prix, where the SF-25 car failed to secure a podium finish and management responded by ending 2025 car development to focus on the 2026 model, which is already around 70% complete.
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This decision, combined with public criticism and uncertainty about winning a race this season, has increased scrutiny on Ferrari’s Formula 1 prospects and the company’s response to competitive pressures.
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We’ll consider how the shift in focus from this season to 2026 R&D raises new questions for Ferrari’s investment outlook.
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To own Ferrari stock, one must believe in its long-term ability to balance exclusivity, premium margins, and innovation, especially as it shifts focus to electrification while harnessing its racing heritage. The recent halt to 2025 Formula 1 car development raises questions around Ferrari’s short-term visibility in motorsports, but does not materially impact the most important near-term catalyst: continued growth in high-margin personalization, lifestyle, and brand licensing segments. The most significant risk right now remains possible earnings volatility if high input costs and supply chain pressures persist.
Among recent announcements, Ferrari’s reconfirmed 2025 guidance for over €7.0 billion in net revenues stands out, emphasizing confidence in its financial trajectory despite ongoing cost headwinds and operational adjustments. This guidance underscores management’s focus on stable revenue streams from its expanding luxury lifestyle and racing activity segments, which remain critical as the company navigates both industry and macroeconomic challenges.
In contrast, investors should be aware of the increased scrutiny over Ferrari’s ability to sustain margins if cost pressures do not ease…
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Ferrari’s outlook anticipates €8.8 billion in revenue and €2.1 billion in earnings by 2028. This is based on an annual revenue growth rate of 8.1% and an increase in earnings of €0.5 billion from the current €1.6 billion.
Uncover how Ferrari’s forecasts yield a €440.52 fair value, a 8% upside to its current price.
Views from 11 Simply Wall St Community members set fair value estimates between €72 and €480 per share. With forecasts split so widely, concerns about cost pressures and their potential effect on Ferrari’s margins remain top of mind for many.
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