Renault (EU:RNO) shares traded little changed in European markets on Thursday after the French automaker reported robust first-half revenue growth, although net profit came in below analysts’ expectations.
The company continued to benefit from strong demand for its electric vehicle lineup, with EV sales climbing 47.6% compared with the same period last year. Sales of the Renault 5 played a key role in offsetting growing competition from Chinese manufacturers, and electric vehicles accounted for one in every five Renault models sold during the period.
Electric Vehicle Demand Drives Revenue Growth
Higher pricing for the new Clio 6 also supported the group’s performance, helping first-half revenue increase 9.4% year over year to €30.25 billion.
Renault generated net income of €700 million during the first six months of the year, a sharp improvement from the €11.18 billion net loss reported in the first half of 2025, when results were heavily affected by a one-off charge linked to the company’s investment in Nissan.
According to a Reuters consensus based on estimates from 21 analysts, the market had expected first-half revenue of €29.4 billion and group share net profit of €770 million.
Margin Target Maintained Despite Industry Challenges
Competitive pricing pressure across the European automotive market continued, particularly as low-cost Chinese manufacturers such as BYD and Chery expanded their presence.
Despite those headwinds, Renault reaffirmed its 2026 operating margin target of 5.5%. The company reported an operating margin of 6.3% in 2025.
Chief Executive François Provost nevertheless warned that rising raw material costs are likely to weigh on profitability across the automotive sector next year.
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