Nemetschek stock drops after Q3 results, guidance confirmed

Nemetschek reported strong reported growth but slower organic momentum in the third quarter of 2026, while maintaining its full-year targets. The company's announcement, released on Thursday, November 5, said revenue rose 26.6% year on year to EUR 371.1 million, including the first-time consolidation of HCSS from July 1.

Nemetschek stock traded at EUR 71.38 on Lang & Schwarz at 12:54 CET on Thursday, November 5, 5.71 percent below the Xetra close of EUR 75.70 on Wednesday, November 4. The quoted price was below the prior Xetra session after the company published its quarterly figures before the market opened.

HCSS lifts reported growth

Excluding HCSS, organic revenue growth reached 13.7% on a reported basis and 12.5% after currency effects. The company said the organic result was in line with its full-year guidance on a nine-month basis, but the acquisition materially lifted the quarterly headline.

Annual recurring revenue increased 35.8% to EUR 1,462.2 million, while organic ARR grew 18.0%. Subscription and SaaS revenue rose 52.4% to EUR 321.9 million, with organic subscription and SaaS revenue up 29.7%. The figures show continued migration toward recurring software revenue across the group.

EBITDA increased 21.8% to EUR 115.9 million. The reported EBITDA margin was 31.2%, compared with an organic margin of 34.8%. Nemetschek said the reported margin reflected a deferred-revenue haircut connected with the purchase-price allocation for HCSS, as well as HCSS-related merger and acquisition costs. Integration expenses and recurring costs related to a share-based compensation program also weighed on the quarter.

Reported earnings per share fell to EUR 0.40 from EUR 0.48 a year earlier. Adjusted EPS rose 20.0% to EUR 0.66 after adjustments for purchase-price-allocation effects and the HCSS deferred-revenue haircut. Net income attributable to shareholders declined 15.7% to EUR 46.6 million, reflecting higher amortization, non-controlling interests and increased financing costs.

Guidance remains unchanged

Nemetschek confirmed its 2026 organic revenue-growth target of 14% to 15% on a currency-adjusted basis and an EBITDA margin of 32% to 33%. The company expects HCSS to add around 600 basis points to reported revenue growth for the year, while acquisition-related effects are expected to dilute the reported EBITDA margin by around 150 basis points.

The company retained its outlook for the Design and Build segments. It lowered the constant-currency revenue-growth expectation for Manage to the mid-single-digit percentage range from low-double-digit growth previously, and now expects Media revenue to remain broadly stable rather than grow in the mid-single-digit range. Nemetschek said the segment changes do not affect the overall group outlook.

Chief Executive Yves Padrines said the quarter demonstrated resilience and profitable growth, while the integration of HCSS and the rollout of AI-powered products continued. Nemetschek highlighted Archicad Max, Allplan Max, Bluebeam Max and the AI-powered Solibri suite as part of its product roadmap.

Nemetschek stock remains tied to the execution of the HCSS integration, the pace of organic expansion and the conversion of customers to subscription models. The confirmed group outlook provides continuity, while the revised Manage and Media assumptions point to uneven conditions across the portfolio. View the real-time quote of Nemetschek stock.

Market participants are also watching the DAX market environment for broader signals affecting German technology shares.

The Q3 announcement was published by EQS News. More news and analyses on Nemetschek stock.