Germany's Nemetschek Q3 revenue slightly misses estimates; backs FY outlook
Overview
Germany AI software provider's Q3 revenue grew 26.6% yr/yr, slightly missing analyst expectations
Q3 EBITDA rose 21.8%, slightly beating analyst expectations despite HCSS-related one-off costs
Company confirmed full-year 2026 guidance after strong ARR and SaaS growth, and HCSS integration progress
Outlook
Nemetschek confirms 2026 organic revenue growth guidance of 14%-15% and EBITDA margin of 32%-33%
Company expects HCSS to add about 600 basis points to 2026 group revenue growth
Nemetschek now sees Manage segment 2026 revenue growth in mid-single digits, down from low-double digits
Result Drivers
HCSS ACQUISITION - First-time consolidation of HCSS expanded Build segment portfolio and increased market opportunity in infrastructure and heavy civil construction
AI SUITE LAUNCHES - Launch of new AI-powered suites across business segments supported growth and highlighted innovation strategy
RECURRING REVENUE MOMENTUM - Strong growth in ARR and subscription/SaaS revenues outpaced overall revenue growth
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Slight Miss* | EUR 371.10 mln | EUR 371.52 mln (7 Analysts) |
Q3 EPS | EUR 0.40 | ||
Q3 Net Income | EUR 46.60 mln | ||
Q3 EBIT | Miss | EUR 76.10 mln | EUR 92.54 mln (5 Analysts) |
Q3 EBITDA | Slight Beat* | EUR 115.90 mln | EUR 115.12 mln (7 Analysts) |
Q3 ARR | EUR 1.46 bln |
*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 "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for Nemetschek SE is €83.50, about 10.3% above its November 4 closing price of €75.70
The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 22 three months ago
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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.)