Carl Zeiss Meditec (AFX) Q3 2026 earnings summary

Executive summary

• Nine-month revenue declined 2.9% year-over-year to EUR 1.554 billion, with FX-adjusted revenue broadly stable; Q3 showed partial recovery but FX headwinds persisted.

• Adjusted EBITDA/EBITA was EUR 124.5 million (8.0% margin), down from 11.1% prior year; reported EBITDA/EBITA was EUR 108.4 million (7.0% margin).

• Order entry fell 5.5% year-over-year to EUR 1.606 billion, with EMEA showing growth but APAC and Americas remaining weak.

• Ophthalmology segment pressured by bifocal IOL recall in China, weaker refractive consumables, and special items, while microsurgery showed growth.

• Strategic initiatives included new leadership in ophthalmology, launch of ZEISS TorUS Ultrasonic Aspirator, and a partnership with AIER in China; ProfitUp program launched for efficiency.

Financial highlights

• Revenue: EUR 1.554 billion, down 2.9% year-over-year; FX-adjusted decline of 0.7%.

• Adjusted EBITDA/EBITA: EUR 124.5 million (8.0% margin); reported EBITDA/EBITA: EUR 108.4 million (7.0% margin).

• Gross margin: 51.0% (down from 52.7%); EPS: EUR 0.80; adjusted EPS: EUR 1.02, both below prior year.

• Operating cash flow: EUR 145.8 million, significantly above prior year; net financial debt improved to EUR 234.8 million.

• Order backlog increased to EUR 432 million from EUR 379.6 million at the end of September 2025.

Outlook and guidance

• FY 2025/2026 revenue expected between EUR 2.15–2.5 billion; adjusted EBITDA/EBITA margin guided at 8–10%, with trends pointing to the lower end.

• Guidance excludes special items in the mid-double digit million euro range (R&D reprioritization, IOL scrapping, legal, ProfitUp costs).

• Goodwill impairment of ~EUR 150 million expected in Q4, no impact on adjusted EBITDA/EBITA or cash flow.

• Midterm (FY 2028/2029+) targets: organic revenue growth to mid-single digits, adjusted EBITDA/EBITA margin above 15%; long-term margin target 16–20%.