Amadeus IT Group (BME:AMS) Margins Hold At 20.5% Testing Bullish Growth Narratives

Latest FY 2025 earnings snapshot

Amadeus IT Group (BME:AMS) has just wrapped up FY 2025 with fourth quarter revenue of €1.6b and basic EPS of €0.57, alongside net income of €247.5m, while on a trailing twelve month basis revenue stood at €6.5b and EPS at €3.04. Over recent periods the company has seen revenue move from €6.1b on a trailing basis at the end of Q4 2024 to €6.5b by Q4 2025, with EPS shifting from €2.87 to €3.04 over the same span, setting up the current release against expectations for mid single digit earnings growth and analyst views of future upside. With a net margin sitting just above 20%, the latest numbers point to a business where profitability remains central to how investors will read this set of results.

See our full analysis for Amadeus IT Group.

With the headline figures on the table, the next step is to see how these results line up against the widely followed bullish and cautious narratives around Amadeus and where those stories may need updating.

See what the community is saying about Amadeus IT Group

TTM profits steady above €1.3b

• On a trailing twelve month basis, Amadeus generated €6.5b of revenue and €1.3b of net income, with basic EPS at €3.04, compared with €6.1b of revenue, €1.3b of net income and EPS of €2.87 a year earlier.
• Supporters of the bullish view point out that earnings grew very quickly over the past five years at about 52.8% per year, and argue that continued product rollouts like Nevio, Navitaire Stratos and the hospitality platform can help push earnings higher. However, the latest one year earnings growth of 6.6% and current net margin of 20.5% leave less of a gap between recent performance and those bullish ambitions, so any slowdown in new migrations or delayed projects would sit awkwardly against that high growth story.

Bulls arguing that Amadeus is still early in a long growth runway may want to see how the full bullish thesis lines up with these numbers in the 🐂 Amadeus IT Group Bull Case.

Margins just above 20% as costs stay heavy

• Net profit margin on a trailing basis sits at 20.5%, only slightly above last year’s 20.4%, even as quarterly revenue held around €1.6b through FY 2025 and R&D plus capital spending reached €1.4b in 2025, equal to 22% of revenue for R&D and 12.5% for capex.
• Skeptics in the bearish camp focus on this tight margin band and the ongoing high spend, arguing that if airlines and hotels keep more AI and software work in house or put pressure on payment pricing, then the combination of 20.5% margins and heavy R&D and capex could limit upside to adjusted EBIT and EPS. At the same time, management’s own ambition for high single digit revenue growth and low double digit adjusted diluted EPS growth over 2026 to 2028 would work against that cautious view if it is met.

Skeptical investors watching that margin and spending mix closely can test their concerns against the full cautious case in the 🐻 Amadeus IT Group Bear Case.

Valuation sits near fair value with upside risk

• At a share price of €51.78, the stock trades at a P/E of 16.7x, close to the European Hospitality average of 16.8x and below the peer average of 19.5x. It also sits about 1.9% below the €52.81 DCF fair value and below the €67.01 analyst price target that implies roughly 29% upside from today’s level.
• Analysts’ consensus narrative links that valuation gap to expectations for revenue growth of about 6.1% per year and earnings growth around 8.4% per year. If the business continues to pair a 20.5% net margin with high quality earnings and keeps returning cash through dividends and buybacks, the current P/E discount to peers and gap to the analyst target become key points for you to stress test against your own view of how durable those growth and margin assumptions really are.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Amadeus IT Group on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With both risks and rewards in play, the real question is how this balance fits your own tolerance and timeline. Take a moment to review the underlying data and recent results, then weigh up the 5 key rewards and 3 important warning signs

See What Else Is Out There

Amadeus combines heavy R&D and capex with margins just above 20%, so any pressure on pricing or growth could quickly compress earnings power.

If that earnings sensitivity feels uncomfortable, you can quickly compare it with companies screened for stronger downside protection by checking out 305 resilient stocks with low risk scores.

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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