FILE PHOTO: Volkswagen logo is seen in this illustration taken July 28, 2025. REUTERS/Dado Ruvic/Illustration/File Photo

BERLIN (Reuters) -Shares in Volkswagen were trading 1.2% higher after markets opened on Tuesday, as the German automaker appeared to reassure investors over headwinds from tariffs and weakness in its luxury brands before releasing third-quarter results.

"The company appeared to me to be comfortable with current market expectations for the quarter," Pal Skirta, an analyst at Metzler, told Reuters, adding that operating profit had likely benefited from solid sales momentum in the group's core brand.

"The company also noted that even if U.S. tariffs are refunded in 2026, 2025 cash flow guidance is not expected to be affected," Metzler said.

Analysts at Jefferies said Volkswagen had given a "reassuring message overall" during the call and that third-quarter profitability was expected within guidance with an adjusted margin of 4.3%.

(Reporting by Rachel MoreEditing by Madeline Chambers)