Will Hensoldt (XTRA:HAG) Use Digitalisation to Strengthen Its Defense Technology Leadership?

• On November 25, 2025, Hensoldt AG presented at PMRExpo 2025, where Oberst d.R. Sven Heursch, Head of Software-defined Defence and Head of Digitalisation, discussed the company's latest advancements and strategies in defense technology.
• The presentation focused on software-defined defense and digitalisation, highlighting areas that are increasingly vital for growth in the defense sector.
• We’ll explore how Hensoldt’s spotlight on software-defined defense at PMRExpo 2025 could influence its investment narrative and future prospects.

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Hensoldt Investment Narrative Recap

To be a Hensoldt shareholder today, you’d need to believe in the sustained momentum of European defense spending and the firm’s ability to capitalize on advancing technologies in digitalization and software-defined defense. The recent PMRExpo 2025 presentation highlights Hensoldt’s technological focus, but it isn’t expected to materially change the most important short-term catalyst: whether actual defense budgets and order intake across Europe keep pace with heightened expectations. The biggest risk remains any reversal or disappointment in defense spending trends, which could pressure anticipated revenue growth. One of the most relevant recent announcements is Hensoldt’s confirmed 2025 revenue guidance of €2,500 million, as of November 22, 2025. This aligns with the tech-forward story presented at PMRExpo, and illustrates the company’s confidence in its pipeline and demand outlook, but also underscores the sensitivity to any shifts in budget allocations or procurement delays across its European customers. In contrast, investors should also be aware that if European defense budgets fall short of projections...

Read the full narrative on Hensoldt (it's free!)

Hensoldt's narrative projects €3.8 billion revenue and €353.8 million earnings by 2028. This requires 17.7% yearly revenue growth and a €263.8 million earnings increase from €90.0 million currently.

Uncover how Hensoldt's forecasts yield a €98.69 fair value, a 44% upside to its current price.

Exploring Other Perspectives

The Simply Wall St Community’s 12 fair value estimates for Hensoldt AG range from €70 to €130.73, revealing wide disagreement about the company’s true worth. In light of these debates, it’s important to consider that revenue growth still depends heavily on sustained defense spending, which could leave expectations vulnerable to shifts in the political or economic climate.

Explore 12 other fair value estimates on Hensoldt - why the stock might be worth as much as 91% more than the current price!

Build Your Own Hensoldt Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Hensoldt research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Hensoldt research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Hensoldt's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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