Demant (DEMANT) Q3 2026 earnings summary

Executive summary

• Q3 revenue was DKK 6,624m, up 21% reported and 11% organically; Hearing Aids led growth, with acquisitions adding 10%.

• Oticon Reveal’s strong launch extended Oticon Zeal momentum and supported Hearing Aids market-share gains.

• FY 2026 outlook: 7–8% organic growth and DKK 4,700–5,000m EBIT before special items.

Financial highlights

• Q3 revenue increased from DKK 5,454m to DKK 6,624m; reported growth comprised 11% organic growth, 10% acquisitive growth and 1% FX.

• Gross margin rose significantly YoY and exceeded expectations, supported by higher Hearing Aids ASP, KIND consolidation and a DKK 25m U.S. tariff refund.

• OPEX organic growth was in line with expectations; strong organic growth drove operating leverage and improved EBIT before special items YoY.

• Cash flow from operations and free cash flow were very strong; gearing declined meaningfully versus Q2 2026.

Outlook and guidance

• FY 2026 guidance is 7–8% organic growth and DKK 4,700–5,000m EBIT before special items; assumptions include 9% acquisitive growth, -1% FX growth and an effective tax rate of ~23%.

• Cost-effectiveness initiatives are expected to add DKK 300m to 2026 EBIT, mainly in H2; KIND is expected to contribute DKK 325m.

• 2026 special items are expected to total DKK 400m: DKK 150m for KIND transaction and integration costs and DKK 250m for cost-saving implementation; DKK 100m is expected in 2027.

• Hearing aid market value growth is expected at 4–5% in 2026; expected FX impact on 2026 EBIT before special items is DKK -125m versus 2025.