Porsche Profit Tops €1.7 Billion as China Sales Slump

Porsche reported a sharp increase in operating profit for the first three quarters of 2026, a gain that contrasts with a decline in vehicle sales. The Stuttgart-based manufacturer posted a nine-month operating profit of €1.74 billion, or $1.94 billion, on Tuesday. That figure compares to just €40 million in the same period last year. The previous year’s low earnings were driven by approximately €2.7 billion in strategic restructuring costs.

Despite the profit jump, the company’s top line contracted. Sales revenue fell 5.9% to €25.28 billion. Total deliveries dropped 16% to 178,532 vehicles. North America remained the largest market for Porsche by volume, offsetting losses elsewhere.

The decline in global sales is partly due to a steep drop in China, where foreign luxury brands face stiff competition from domestic rivals like BYD, Geely, and Xiaomi. Porsche said it has lowered its dependence on the Chinese market to reduce volatility in its results.

Jochen Breckner, the company’s chief financial officer, addressed the shifting market dynamics during an earnings webcast. He stated that the firm’s geographically balanced sales footprint provides resilience across different regions. Breckner noted that Porsche has significantly reduced its exposure to China, making the business less dependent on that specific market environment.

Shares of the Volkswagen-owned automaker rose 2.3% following the announcement. The company is proceeding with a wider restructuring plan that includes cutting thousands of jobs to lower costs and address softer demand. Citi analysts said the nine-month results matched expectations despite the challenges in China and lower delivery volumes.

The analysts added that Porsche’s underlying EBIT remains resilient and ahead of other German premium peers. They noted that the company has outlined a plan to return to double-digit underlying operating profit margins, with recovery expected to begin in 2028. Citi projected that net cash flow would climb back above IPO levels by 2031, calling the multi-year recovery plan credible.