SGS: Trends remain robust in 2Q

Research evidence excerpt

SGS: Trends remain robust in 2Q

22 June 2026

Estimate Change

Will Kirkness

+44 20 7676 8355

European Business Services will.kirkness@bernsteinsg.com

SGS SA Filippo Giardini

+44 20 7762 4723

Rating filippo.giardini@bernsteinsg.com

Outperform

Price Target

SGSN.SW 103.00 CHF

Ahead of SGS 1H results on 24 July we refresh our model to reflect changes to our divisional

Close Date 18 Jun 2026

forecasts, along with scope and FX expectations. For 2Q26, we estimate organic growth of

SGSN.SW Close Price (CHF) 91.40

5.2% (from 5.6%), showing continued and/or stable growth across key divisions such as C&P

Price Target (CHF) 103.00

and BA but also reflecting headwinds in NR and H&N. We model Scope and FX of 6.9% and

Upside/(Downside) 13%

-3.8%, respectively, resulting in margins of 15.3% in 1H26 (+40bps YoY).

52-Week Range 97.48/79.68

We downgrade 2Q25 organic growth by 40bps to 5.2%. On a divisional basis, we EDME 1,578.06

upgrade C&P by 30bps, with better than expected Softline data, while hardline and FYE Dec

connectivity remains unchanged vs our old estimates. We downgrade Health & Nutrition Div Yield 3.5%

by 30bps, reflecting moderate weakness in pharma, namely in Europe, but supported by Market Cap (CHF) (M) 18,085

easier comps and cosmetics. For I&E, we downgrade the division by 50bps, reflecting the EV (CHF) (M) 20,735

exit of low margin contracts in Industrial Testing. With the full impact of the middle east, we Performance YTD 1M 6M 12M

reduce organic growth for Natural Resources by 40bps, namely in Oil/Gas/Chemicals as Absolute (%) (0.2) 3.8 0.5 8.0

well as agriculture, stemming from weak crop yields for wheat in North America. We leave our EDME (%) 7.3 1.9 8.3 18.7

estimates for Business Assurance unchanged. Relative (%) (7.5) 1.9 (7.8) (10.8)