SGS (SGSN) Q1 2026 TU earnings summary

Executive summary

• Record Q1 2026 sales of CHF 1.75 billion, up 12.6% in constant currency and 3.9% in CHF, driven by 5.3% organic growth and 7.3% from acquisitions, despite -8.7% FX impact.

• Integration of ATS and several bolt-on acquisitions, including Granite River Labs, Alverad, and others, is on track, expanding Digital Trust and AI capabilities.

• Scrip dividend take-up exceeded 60%, redirecting CHF 400 million of cash to strategic initiatives and growth opportunities.

• Leadership in Digital Trust and sustainability services reinforced through acquisitions, certifications, and AI integration.

• 2026 outlook confirmed, targeting 5–7% organic sales growth, 5–7% from acquisitions, and ≥16% adjusted operating income margin, with confidence despite geopolitical uncertainties.

Financial highlights

• Q1 sales reached CHF 1,747 million, up 3.9% year-over-year, with 5.3% organic growth, 7.3% scope effect, and -8.7% FX impact.

• Growth in Swiss francs (+3.9%) equates to +7.1% in euros and +19.3% in US dollars due to currency effects.

• Scrip dividend had a 61.35% take-up, with CHF 239 million paid in cash and the remainder in shares.

Outlook and guidance

• 2026 outlook reaffirmed: 5–7% organic sales growth, 5–7% from acquisitions, ≥16% adjusted operating income margin, and >50% cash conversion.

• April and Q2 expected to show continued strong growth, barring major geopolitical changes.

• Capital Markets Event scheduled for November 2026.