Denmark's NNIT Q2 revenue falls on life sciences weakness
Denmark's NNIT Q2 revenue falls on life sciences weakness
Overview
Denmark IT solutions provider's Q2 revenue fell 4.5% yr/yr, driven by life sciences weakness
Adjusted EBIT margin for Q2 was broadly stable at 4.8%, reflecting cost-reduction efforts
Company maintained full-year outlook and launched new transformation program to restore growth
Outlook
NNIT maintains 2026 outlook for single-digit negative constant currency revenue growth
Company expects 2026 group EBIT margin excl. special items of 4-7%
Special items in 2026 projected below last year's DKK 83m
Result Drivers
CUSTOMER CAUTION - NNIT said continued customer caution, especially among tier-1 life sciences clients, weighed on revenue
COST REDUCTION - Stable EBIT margin reflected ongoing cost-reduction initiatives and actions to align capacity with demand
AI INITIATIVES - NNIT said new AI frameworks delivered initial efficiency gains and are being deployed internally and in customer projects
Company press release: ID:nGNE74vXVK
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Slight Beat* | DKK 441.6 mln | DKK 439 mln (2 Analysts) |
Q2 Adjusted EBIT |
| DKK 21.4 mln |
|
*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 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the it services & consulting peer group is "buy"
Wall Street's median 12-month price target for NNIT A/S is DKK55.00, about 37.5% above its August 26 closing price of DKK40.00
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 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.)