Last Update 05 Dec 25

Fair value Decreased 6.58%

TMV: Cost Discipline And Margin Resilience Will Support Future Share Price Upside

Analysts have reduced their price target on TeamViewer from EUR 14 to EUR 11, reflecting slightly softer assumptions for long term revenue growth, profit margins and valuation multiples.

Analyst Commentary

Recent commentary highlights a more cautious stance on TeamViewer, with price targets adjusted downward to reflect moderated expectations for growth and profitability. Analysts now see a more balanced risk reward profile, with valuation more closely aligned to near term execution risks.

Bullish Takeaways

Bullish analysts note that the revised price target still assumes stable mid term revenue growth, reflecting confidence in TeamViewer's core remote connectivity franchise.
Despite the cut, the maintained neutral rating suggests the current valuation already discounts a significant portion of recent operational and macro headwinds.
There is an expectation that continued cost discipline and margin protection efforts could support earnings resilience, even if top line growth moderates.
Analysts highlight that a clearer capital allocation framework and disciplined investment approach could provide upside to the new target if execution improves.

Bearish Takeaways

Bearish analysts view the lower price target as evidence that previous growth assumptions were too optimistic, particularly around upselling and new customer acquisition.
Concerns persist that competitive pressures and slower enterprise demand could cap pricing power, limiting margin expansion and justifying a lower valuation multiple.
Execution risks around product innovation and go to market efficiency are seen as elevated, reducing visibility on a return to higher growth trajectories.
The neutral rating, combined with a reduced target, indicates limited near term catalysts, with upside seen as contingent on clearer proof of sustainable reacceleration.

What's in the News

TeamViewer unveiled Tia, an autonomous multi agent AI for proactive IT issue detection, remediation, and prevention. It is integrated into TeamViewer ONE to automate routine support and enhance system stability (Key Developments).
The company launched Agentless Access for its Tensor platform, enabling secure remote work on industrial and OT systems without software installation on each device. This is intended to strengthen cybersecurity and compliance in connected factories (Key Developments).
TeamViewer reported rapid adoption of its AI features, with more than 270,000 IT support sessions automatically summarized and material gains in documentation time savings and issue resolution speed among roughly 10,000 customers (Key Developments).
TeamViewer confirmed its 2025 revenue guidance of EUR 778 million to EUR 797 million. The company indicated it expects to land at the lower end of the range despite an ARR shortfall (Key Developments).
For 2026, the company cut its revenue growth outlook to 2% to 6%, guiding to EUR 790 million to EUR 825 million. This is down from a previous target range of EUR 850 million to EUR 870 million (Key Developments).

Valuation Changes

Fair Value: reduced modestly from €11.30 to €10.56, reflecting slightly softer long term assumptions.
Discount Rate: edged up marginally from 8.90% to 8.91%, indicating a very small increase in perceived risk.
Revenue Growth: trimmed slightly from 7.18% to 7.15%, signaling a minor downgrade to long term growth expectations.
Net Profit Margin: lowered slightly from 20.00% to 19.91%, pointing to a small anticipated pressure on profitability.
Future P/E: decreased from 12.90x to 12.12x, implying a modest derating of the medium term valuation multiple.

Expansion into AI, digital workplace management, and industrial partnerships positions TeamViewer for strong, recurring growth through increased upselling and deeper enterprise integration.
Efficient integration of acquisitions and platform consolidation are boosting margins and operational efficiency, while enhancing contract stability and long-term earning potential.
Heavy reliance on struggling SMBs, intensifying competition, public sector pressures, and slow product innovation threaten TeamViewer's growth, pricing power, and long-term profitability.

Catalysts

About TeamViewer

Develops and distributes remote connectivity solutions worldwide.What are the underlying business or industry changes driving this perspective?

The ongoing digital transformation and persistent shift toward hybrid and remote work are driving consistent demand among enterprises for secure remote access, device management, and IT support tools-TeamViewer's integration and expansion of digital workplace management (e.g., new DEX/TeamViewer ONE offerings) position the company to benefit from these trends and fuel revenue growth through cross-sell and upsell opportunities.
Rapid growth in connected devices, industrial IoT, and expanded enterprise IT complexity is creating new addressable markets for proactive device management and automation; TeamViewer's investments in AI, integration of 1E technology, and deeper move into endpoint-based offerings set the stage for both increased average contract value and expansion of ARR in coming years.
The recent launch and go-to-market ramp of DEX Essentials, aimed at both SMB and enterprise segments with per-endpoint pricing, opens a significant new upsell stream for TeamViewer's large existing user base, which is likely to accelerate both revenue and margin expansion as adoption grows.
Strategic partnerships, tool integration (e.g., SAP, Siemens), and platform consolidation (TeamViewer ONE) make TeamViewer an increasingly embedded component of enterprise and industrial workflows, supporting higher multiyear contract rates, improved retention, and greater earnings stability through predictable, recurring SaaS revenue.
Post-merger integration with 1E has progressed faster than planned, unlocking operational synergies, streamlining processes, and improving sales/marketing efficiency, which are already driving EBITDA margin gains (now ~44%), positioning net margins for further improvement as top-line growth resumes.

TeamViewer Future Earnings and Revenue Growth

Assumptions

How have these above catalysts been quantified?

Analysts are assuming TeamViewer's revenue will grow by 9.9% annually over the next 3 years.
Analysts assume that profit margins will increase from 17.8% today to 21.1% in 3 years time.
Analysts expect earnings to reach €199.5 million (and earnings per share of €1.32) by about September 2028, up from €126.4 million today. However, there is a considerable amount of disagreement amongst the analysts with the most bullish expecting €240.7 million in earnings, and the most bearish expecting €155.7 million.
In order for the above numbers to justify the analysts price target, the company would need to trade at a PE ratio of 14.5x on those 2028 earnings, up from 12.1x today. This future PE is lower than the current PE for the DE Software industry at 33.2x.
Analysts expect the number of shares outstanding to decline by 0.92% per year for the next 3 years.
To value all of this in today's terms, we will use a discount rate of 7.87%, as per the Simply Wall St company report.

TeamViewer Future Earnings Per Share Growth

Risks

What could happen that would invalidate this narrative?

The company's ongoing dependence on the volatile SMB segment, which is experiencing higher churn, subdued new customer inflow, and modest ARR growth (only 1% YoY), poses a risk to long-term revenue growth and could compress net margins if the macroeconomic headwinds or price sensitivity among small businesses persist or intensify.
Heightened competition and commoditization in remote access and digital workplace solutions, especially as larger tech companies and integrated platforms target "tool consolidation," may erode TeamViewer's pricing power and market share, leading to stagnant or declining revenues and lower earnings over time.
Exposure to U.S. federal sector challenges-such as governmental budget cuts, political uncertainties, and the need to offer price concessions or rescoping to retain major public contracts-suggests pressurized sales pipelines and margin risk for enterprise deals, especially for newly integrated 1E offerings, threatening overall profitability.
Increasing susceptibility to macroeconomic cycles and regional market volatility (e.g., the U.S. market's uncertain outlook and China's ongoing challenges) could undermine consistent revenue growth and earnings predictability, as TeamViewer's enterprise and SMB performance is highly regionally imbalanced.
The company's slow shift toward innovative, differentiated offerings-illustrated by only early traction on new products like DEX Essentials and TeamViewer ONE, and a need to drive ASP and cross-selling through UI changes and in-product promotions-highlights the risk that TeamViewer may be outpaced by competitors, limiting future ARR and revenue growth while pressuring long-term financial stability.

Valuation

How have all the factors above been brought together to estimate a fair value?

The analysts have a consensus price target of €15.162 for TeamViewer based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of €20.0, and the most bearish reporting a price target of just €11.0.
In order for you to agree with the analyst's consensus, you'd need to believe that by 2028, revenues will be €943.2 million, earnings will come to €199.5 million, and it would be trading on a PE ratio of 14.5x, assuming you use a discount rate of 7.9%.
Given the current share price of €9.74, the analyst price target of €15.16 is 35.7% higher.
We always encourage you to reach your own conclusions though. So sense check these analyst numbers against your own assumptions and expectations based on your understanding of the business and what you believe is probable.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.

Analysts Revise TeamViewer Outlook as Valuation and Growth Estimates Adjust Amid New Integrations