Stuttgart-based sports car maker Porsche reported a first-quarter 2026 net profit of 391 million euros, down nearly 25 percent from the previous year. Revenue fell five percent to 8.4 billion euros. Reasons include high costs for a strategic shift, US tariffs, and declining sales.
Porsche AG reported that net profit for January to March fell 24.6 percent to 391 million euros, compared to 518 million euros in the prior-year quarter. Operating profit dropped 22 percent to 595 million euros, and sales margin declined from 8.6 percent to 7.1 percent. Worldwide vehicle deliveries totaled 60,991 units, down 15 percent year-over-year. In China, sales fell 21 percent to 7,519 units.
CEO Michael Leiters, in office since January, stated: "2026 stands for Porsche's realignment." The company spent about 100 million euros on the strategic shift, with US tariffs causing 200 million euros in losses. The share of battery-electric vehicles dropped to 19.8 percent. Positively, net cash flow in the automotive segment rose to 514 million euros from 198 million euros.
For the full year, Porsche forecasts revenue of 35 to 36 billion euros, excluding potential Iran war impacts. Employees will not receive a premium for the first time in years, and board members no bonus for 2025. Leiters announced in March further job cuts: 1,900 positions in the Stuttgart region by 2029, plus 2,000 temporary contracts expired.