Order Growth Amid Margin Pressure Could Be A Game Changer For Carl Zeiss Meditec (XTRA:AFX)

• Carl Zeiss Meditec AG has reported past full-year 2025 results showing sales of €2,227.65 million, up from €2,066.13 million, while net income eased to €141.21 million and basic EPS from continuing operations declined to €1.61.
• The company also set an annual dividend of €0.55 per share, as it highlighted strong order entry, a higher share of recurring revenue and accelerating Microsurgery growth, even as margins came under pressure from US tariffs and foreign exchange effects.
• We’ll now examine how strong order entry and a higher share of recurring revenue influence Carl Zeiss Meditec’s investment narrative.

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Carl Zeiss Meditec Investment Narrative Recap

Carl Zeiss Meditec appeals to investors who believe in long term demand for ophthalmic and microsurgical technologies, supported by rising recurring revenue. The latest results show solid sales growth and record order entry, but also underline that the key near term catalyst of converting this backlog into profitable growth is competing with the biggest current risk: margin pressure from tariffs, foreign exchange and China related uncertainties, which the most recent figures have not fully resolved.

Among the latest announcements, the full year 2025 results are most relevant, because they tie together several moving parts that matter for the thesis. Revenue grew 7.8% year on year, order entry jumped 18.2% and recurring revenue reached 50% of sales, which helps the story around earnings quality, even as EBITA margins softened and the annual dividend was trimmed to €0.55 per share.

Yet behind the strong order intake, investors should also be aware of the risk that ongoing US tariffs and foreign exchange effects could...

Read the full narrative on Carl Zeiss Meditec (it's free!)

Carl Zeiss Meditec's narrative projects €2.6 billion revenue and €266.9 million earnings by 2028. This requires 6.3% yearly revenue growth and about a €116.8 million earnings increase from €150.1 million today.

Uncover how Carl Zeiss Meditec's forecasts yield a €53.61 fair value, a 35% upside to its current price.

Exploring Other Perspectives

Six fair value estimates from the Simply Wall St Community cluster between €53.61 and €88.75 per share, showing how far opinions can stretch. Against that backdrop of differing views, the combination of rising recurring revenue and ongoing margin pressure from tariffs and foreign exchange gives you several angles to weigh when you think about Carl Zeiss Meditec’s future performance.

Explore 6 other fair value estimates on Carl Zeiss Meditec - why the stock might be worth over 2x more than the current price!

Build Your Own Carl Zeiss Meditec 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 Carl Zeiss Meditec research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free Carl Zeiss Meditec research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Carl Zeiss Meditec'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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