Carl Zeiss Meditec AG: Q2 review: Cost savings announced, but mid-term targets imply weak underlying business

Research evidence excerpt

Carl Zeiss Meditec AG: Q2 review: Cost savings announced, but mid-term targets imply weak underlying business

Equity Research

European Medical Technology & Services

13 May 2026

Carl Zeiss Meditec AG

Q2 review: Cost savings

announced, but mid-term targets

AFXG.DE/AFX GY EQUAL WEIGHTimply weak underlying business

Unchanged

A significant cost savings plan is a positive for Zeiss, with the European Medical POSITIVE Technology & Services

Unchangedmarket reacting accordingly (+12% vs. +1% SXDP yesterday).

In our view, however, the margin guide implies margin Price Target EUR 28.00 lowered -7% from EUR 30.00

contraction in the business ex-cost savings, keeping us on the Price (11-May-26) EUR 25.56

Potential Upside/Downside +9.5%sidelines.

Source: Bloomberg, Barclays Research

Following yesterday's Q2'26 results (Q2 first take: FY26 adj EBITA guide below cons, cost saving

Market Cap (EUR mn) 2286

programme announced), we update numbers for Carl Zeiss Meditec. The quarter was

Shares Outstanding (mn) 89.44

characterised by the announcement of a cost savings programme expected to generate €160m

Free Float (%) 41.00

of net savings by FY29, and guidance for an adj EBITA margin of >15% in the same year. Savings

52 Wk Avg Daily Volume (mn) 0.2

will achieved through headcount reduction of up to 1,000 workers, procurement supply chain

Dividend Yield (%) 2.14

optimisation, portfolio rationalisation, R&D cost savings, and reduced admin and material

Return on Equity TTM (%) 6.79

costs. In our view, given that adj EBITA is guided to be ~€200m for FY26 and the company

Current BVPS (EUR) 23.66

expects €160m of cost savings, and assuming some underlying top-line growth offset by Source: Bloomberg

portfolio rationalisation, achieving an adj EBITA margin of 15% in FY29 would imply some