2Q FY26 Results preview: Upside potential from Zeal, guide raise debate on

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2Q FY26 Results preview: Upside potential from Zeal, guide raise debate on

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Demant

2Q FY26 Results preview: Upside potential

from Zeal, guide raise debate on

Reiterate Rating: BUY | PO: 310.00 DKK | Price: 276.80 DKK

Stock offers positive earnings momentum. Buy reiterated 08 July 2026 Corrected

Demant reports 2Q26 on August 11th. Into results, investors are focused on two Equity

questions: 1) can Hearing Aids clear the symbolic c8% growth bar (from our discussions

with investors) and 2) how much of a guide raise is needed to meet expectations while

Key Changespreserving 2H catalysts? We view 8% as achievable in 2Q and believe a 1%

organic/DKK150m EBIT raise should be enough to satisfy expectations, while leaving (DKr) Previous Current

scope for further upside in 2H. With further evidence of Zeal traction (strong May VA Price Obj. 280.00 310.00

share gains) and Demant one of the few MedTech names with positive earnings 2027E Rev (m) 27,614.5 27,678.2

momentum, we raise FY27E EPS and beyond by 2% and lift target P/E/EBITDA from 2028E Rev (m) 29,379.3 29,471.6

18.5x/13.5x to 21x/14x. Our PO moves from DKK280 to DKK310 and we reiterate Buy. 2027E EPS 14.87 15.10

We also note elevated short interest, likely linked to MSCI exclusion risk, which we view 2028E EPS 16.89 17.25

as unlikely, creating potential for a short squeeze.

+8% HA growth looks achievable, with upside risk. JulienResearchOuaddourAnalyst >>

Following a strong 1Q (+9%), Hearing Aids will be the key 2Q focus. Zeal should BofASE+33 1 8770(France)0614

contribute more as 1) the US launch was in the base for the full quarter (vs two months julien.ouaddour@bofa.com

in 1Q), 2) VA launch could add >1ppt to growth if June share gains match May, and 3) Anna Ractliffe >>

Research Analyst