SGS: 1H‘26 model update and review: Continue to stay positive given continued strong growth momentum

Research evidence excerpt

SGS: 1H‘26 model update and review: Continue to stay positive given continued strong growth momentum

J P M O R G A N Europe Equity Research

24 July 2026

SGS Overweight

SGSN.S, SGSN SW

1H’26 model update and review: Continue to stay Price (24 Jul 26):CHF93.38

positive given continued strong growth momentum ▼Price Target (Dec-27):CHF119.00 Prior (Dec-27):CHF120.00

SGS shares are down -3% post the results today despite the accelerating top-line

trends and 1% beat on op. EBITA vs. company-compiled consensus. We see European Business Services

potential reasons for weakness being the lack of material upgrades implied by the Victoria K Chang AC

results, alongside investor focus around: (1) underlying margin excl. M&A, (44-20) 7134-5439

particularly in I&E where margins decreased 90bps yoy despite ATS being victoria.kx.chang@jpmorgan.com

J.P. Morgan Securities plc

accretive, (2) higher 1H restructuring/one-offs costs than expected, and (3)

Jane L Sparrowquestions around the increase in unbilled revenues on the balance sheet. We

(44-20) 3493-7101

address some of these questions here. We continue to remain positive on SGS - we jane.sparrow@jpmorgan.com

think the company can continue to deliver sub-sector leading top-line growth and J.P. Morgan Securities plc

margin expansion. We view that continued execution alongside effective use of the Ankit Khandelwal

balance sheet through bolt-on M&A can lead to re-rating of the stock - SGS trades (91-22) 6157-5167

on c.21x 12m fwd P/E vs. 23x historical median despite delivering better growth ankit.khandelwal@jpmchase.com

vs. history. J.P. Morgan India Private Limited

• Estimate changes: Our 2026 revenue/adj. EBITA/adj. EPS estimates change

by +0.5%, reflecting small upgrades to organic growth and FX. We now expect Key Changes (FYE Dec)