Porsche AG Faces Market Backlash After Earnings Report

In a surprising turn of events, Porsche AG witnessed a significant 7% drop in its stock value following the announcement of its first-quarter earnings. The luxury car manufacturer reported a 44% plunge in profit after tax, amounting to €518 million, alongside a 44.5% decrease in earnings per share, which fell to €0.56.

Revised Financial Outlook for 2025

Adding to the concerns, Porsche has also revised its financial projections for 2025. The company has adjusted its revenue forecast downward from the previously estimated range of €39-€40 billion to a more conservative €37-€38 billion. Similarly, the return on sales guidance has been lowered from 10%-12% to a modest 6.5%-8.5%.

Market Reaction

The immediate market reaction was stark, with Porsche's stock price falling 7.6% to €43.35 by 9:18 am CET, reflecting investor disappointment and concerns over the company's future performance.