Volkswagen shares surged 5% after the carmaker reported €6 billion in net cash flow for 2025, surpassing market expectations of €0.6 billion. The figure beat internal guidance by roughly €1 billion, driven by lower working capital requirements and capital expenditures coming in below projections.

Despite facing headwinds from weak China demand and U.S. tariff risks, the automaker's performance provided a positive surprise. Kepler Cheuvreux analyst Michael Raab called the update a positive surprise but cautioned that the sustainability of cost reductions and their impact on 2026 cash flow remains unclear.

Volkswagen reaffirmed its full-year operating margin target of 2% to 3%. CFO Arno Antlitz indicated plans to continue reducing investment levels, with the automotive business investment ratio falling to 12% of revenue from 14.3% in 2024, signaling a tighter capital discipline moving forward.