Renault surges in Paris: confirms guidance following better-than-expected quarterly revenue

(Il Sole 24 Ore Radiocor) - Renault surges on the Paris Stock Exchange after confirming its financial targets for 2026, buoyed by third-quarter revenue exceeding analysts’ forecasts. The French carmaker’s share price is the biggest riser on the CAC 40 index and is among the top performers on the Stoxx Europe index.

For 2026, Renault continues to forecast an operating margin of around 5.5 per cent and operating cash flow from the automotive sector of approximately 1 billion euros. The company expects a slight improvement in the margin in the second half of the year compared with the first half (5.2%), “with the usual positive seasonal effect expected to be less pronounced than in previous years, due to rising raw material costs and inflation”, a press release states.

The confirmation of targets follows on from third-quarter revenue growth of €11.6 billion, up 1.5 per cent on a reported basis and 1.4 per cent at constant exchange rates. According to the consensus provided by the group, analysts had forecast average revenue of €11.39 billion. Revenue from the group’s automotive division stood at €9.84 billion, stable on a reported basis but down 0.2% at constant exchange rates. Forecasts, however, had pointed to a lower figure, averaging 9.69 billion. The financial services sector recorded revenue of 1.76 billion (+11%).

In the third quarter , the car manufacturer sold 497,799 vehicles, 6 per cent fewer than in the same period of 2025, mainly due to intensifying competition in Europe and Latin America, regions targeted by Chinese car manufacturers. Whilst recording strong demand for electric vehicles such as the Renault 5 Electric, the group indicated that competition is intensifying, particularly for its low-cost brand Dacia, which has recently entered the C-segment, the market for medium-sized cars, where there is “strong pressure from Chinese brands in Europe”, said CFO Duncan Minto during a conference call, describing the quarter’s sales performance as “resilient”.

In the first nine months, Renault’s turnover reached €41.85 billion, representing an increase of 7.1 per cent at current exchange rates and 7.6 per cent at constant exchange rates. During this period, the group sold a total of 1,178,946 vehicles, up by 1.1 per cent. As at 30 September 2026, Renault’s total stock stood at 532,000 vehicles, of which 312,000 were held by the independent dealer network, compared with 538,000 vehicles at the end of September 2025. This level is described as ‘healthy’ by the group, which expects total stock at the end of 2026 to be at the lower end of the range of 525,000 to 550,000 units. JP Morgan has confirmed its ‘buy’ rating on the share, with a target price unchanged at 45 euros.