Germany's Fresenius Medical says Q3 results weighed by China; narrows forecast

Overview

• Germany kidney care provider's Q3 revenue rose 1% yr/yr, slightly beating analyst expectations

• Net income and EPS declined sharply, mainly due to one-time China strategy costs

• Company narrowed FY 2026 outlook to flat revenue and operating income growth between flat and negative mid-single digit

Outlook

• Fresenius Medical Care expects 2026 revenue growth to be broadly flat versus prior year

• Company narrows 2026 operating income outlook to between flat and a negative mid-single digit percent growth rate

• Company cites anticipated headwinds in Q4 as reason for narrowing full-year outlook

Result Drivers

• CARE DELIVERY GROWTH - Q3 revenue growth was driven by increases in Care Delivery and Care Enablement segments, offset by declines in Value-Based Care

• CHINA STRATEGY COSTS - One-time costs related to the China strategy refinement weighed on net income and operating income

• REGULATORY AND INFLATION HEADWINDS - Operating income fell due to regulatory changes and increased inflation, per CFO Martin Fischer

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 9 "hold" and 8 "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 Medical Care AG is €42.00, about 3.7% above its November 2 closing price of €40.50

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads

• Nov 3 - Fresenius Medical cuts 2026 profit outlook as US treatment decline deepens

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

• Nov 3 - Pfizer Q3 revenue beats estimates on new launches; raises guidance

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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.)