HMS Networks (HMS) Q3 2026 earnings summary

Executive summary

• Q3 revenue reached a record SEK 1,024m, up 15% reported and 6% organically; order intake rose 29% to SEK 1,104m, up 22% organically.

• EBITA was SEK 280m at a 27.4% margin; operating cash flow was SEK 333m.

• Data-center and semiconductor demand supported growth, while tariffs and higher component costs weighed on gross margin.

Financial highlights

• Q1–Q3 revenue increased 14% to SEK 2,987m, with 11% organic growth; EBITA rose to SEK 810m from SEK 615m.

• Q3 gross profit was SEK 642m versus SEK 573m; gross margin was 62.7%, or 62.4% excluding a SEK 3m U.S. tariff refund.

• Q3 adjusted EPS was SEK 3.82 versus SEK 3.83; reported EPS was SEK 3.27 versus SEK 3.26.

• Q3 operating cash flow was SEK 333m versus SEK 258m; Q1–Q3 operating cash flow rose to SEK 916m from SEK 646m.

• Q3 operating expenses rose 6% organically to SEK 391m, reflecting salary increases, R&D investment and the build-out of an internal AI organization.

Outlook and guidance

• Customer price increases take effect January 1, 2027, with component costs and expanded tariffs expected to pressure gross margin in Q4 and potentially into 2027.

• Pre-buying may continue for at least one or two more quarters, depending on component-market conditions; Q3 included SEK 70m of such orders.

• Solid, broad-based demand supports a positive medium-term outlook; all three divisions are expected to grow over the longer term.

• Profitable growth through organic investment and acquisitions remains the priority; the 2030 revenue ambition is SEK 7.5bn.