German luxury carmaker Porsche AG reported a 34% rise in first-half operating profit to €1.35 billion on Wednesday, despite lower revenue and a double-digit decline in vehicle deliveries. The result was ahead of analysts’ average projection of €1.26bn, according to S&P Global Visible Alpha.
Once Volkswagen’s most reliable source of profit, Porsche has been hit especially hard by slumping Chinese demand for German luxury cars and weaker-than-expected electric vehicle sales.
The German sports-car maker attributed the increase in profit to tighter management of costs, prices and its product mix, alongside its “value over volume” strategy.
However, the company's stronger profit was also helped by significantly lower restructuring costs. Porsche recorded a net charge of around €100 million from its strategic realignment in the first half of 2026, compared with approximately €800 million a year earlier.
Revenue fell by 5.1% to €17.23 billion, from €18.16 billion in the same period last year. Its operating return on sales nevertheless rose to 7.8%, from 5.5%.
