Finance
VW shares jump to top of Germany's DAX after upbeat automotive cash flow
Published by Global Banking and Finance Review
Posted on January 22, 2026
2 min readLast updated: January 22, 2026
Quick Summary
Volkswagen's automotive division reported a strong cash flow of 6 billion euros, boosting shares by 5.6%. Analysts were surprised by the magnitude of the increase.
Volkswagen Shares Surge to Lead Germany's DAX After Strong Cash Flow Report
Volkswagen's Financial Performance
By Amir Orusov
Impact on DAX Index
Jan 22 (Reuters) - Shares in Volkswagen jumped to the top of Germany's blue-chip DAX index on Thursday after Europe's largest carmaker reported better-than-expected 2025 net cash flow in its automotive division.
Market Reactions and Trends
Shares climbed to 103.70 euros ($121.24) by 0953 GMT, putting them on track for their biggest one‑day gain in six months if the rise holds.
U.S. Trade Relations
Net cash flow for the year came in at around 6 billion euros, said Volkswagen on Wednesday evening, 1 billion euros higher than the previous fiscal year and beating the company's expectations of around zero net cash flow.
Electric Vehicle Incentives
While management had already hinted at potential upside to the guidance, the magnitude is surprising, analysts at Jefferies said in a note.
Industry sentiment was further buoyed by U.S. President Donald Trump backing away from Greenland tariffs, helping to ease immediate market worries over punitive trade measures, Warburg Research analyst Fabio Hoelscher said.
The pan-European automobiles and parts index was up around 2.3%, with German carmakers BMW, Mercedes and Porsche rising between 1.9% and 2.6%.
"The federal electric vehicle subsidies in Germany and a technical rebound on the sector's relatively low valuations could be helping too," Hoelscher added.
($1 = 0.8557 euros)
($1 = 0.8554 euros)
(Reporting by Amir OrusovEditing by Linda Pasquini and Miranda Murray)
Key Takeaways
- •Volkswagen shares rose 5.6% after strong cash flow report.
- •Automotive division's net cash flow reached 6 billion euros.
- •Stock set for biggest daily gain in six months.
- •Analysts surprised by the magnitude of cash flow increase.
- •Management hinted at potential upside to guidance.
Frequently Asked Questions about VW shares jump to top of Germany's DAX after upbeat automotive cash flow
1What is the stock market?
The stock market is a collection of markets where shares of publicly traded companies are bought and sold. It serves as a platform for companies to raise capital and for investors to trade shares.
2What is a share?
A share represents a unit of ownership in a company. When you own shares, you own a portion of that company and can benefit from its profits and growth.
3What is an automotive industry?
The automotive industry encompasses all companies and activities involved in the design, development, manufacturing, marketing, and selling of motor vehicles. It includes automakers and parts suppliers.