Healthcare firm Fresenius Q3 revenue rises on Kabi growth; lifts outlook

Overview

• Germany healthcare firm's Q3 organic revenue grew 5%, driven by Kabi and Helios units

• Core EPS rose 14% in constant currency, supported by operating gains and lower interest expense

• Company improved FY 2026 core EPS and EBIT margin guidance; signed major biosimilars deal with WuXi

Outlook

• Fresenius raises FY/26 Core EPS growth outlook to upper half of 10%-15% range

• Company now expects FY/26 Group EBIT margin above 11.5%

• Fresenius expects FY/26 organic revenue growth of 4%-7%

Result Drivers

• KABI GROWTH VECTORS - Fresenius said Kabi's Biopharma, MedTech and Nutrition segments drove strong organic growth, with Biopharma up 29% and Growth Vectors contributing more than half of Kabi EBIT

• HELIOS EBIT GAINS - Helios EBIT grew 19% in constant currency, supported by solid revenue growth, cost management, and temporary surcharge benefit in Germany

• INTEREST EXPENSE REDUCTION - Company said further debt reduction lowered interest expense, supporting Core EPS growth

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the healthcare facilities & services peer group is "buy"

• Wall Street's median 12-month price target for Fresenius SE & Co. KGaA is €57.00, about 16.8% above its November 3 closing price of €48.81

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads

• Nov 2 - Fresenius signs biosimilars pipeline agreement with WuXi Biologics

• Nov 3 - Bayer raises 2026 profit outlook as pharma business beats expectations

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)