Why Qt Group Oyj (HLSE:QTCOM) Is Down 12.0% After Flat Q3 Revenue and Profit Warning

• Qt Group Oyj recently reported Q3 2025 revenue of US$40.7 million, flat year-over-year on a constant currency basis, and issued a profit warning due to postponed large deals and a lower EBITDA margin, while keeping full-year guidance unchanged.
• Additionally, the company completed its acquisition of IAR Systems, which is expected to broaden its product suite and reinforce its position within the embedded markets segment.
• We will examine how the flat revenue and profit warning with maintained guidance may reshape Qt Group’s investment narrative going forward.

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Qt Group Oyj Investment Narrative Recap

To be a Qt Group shareholder right now means believing in the company's long-term role in powering embedded and cross-platform software, particularly as demand for advanced user interfaces in automotive, industrial, and IoT segments grows. The recent flat revenue and profit warning did not impact Qt's full-year guidance, which suggests the management remains moderately confident; however, the biggest near-term risk, the delays in large deals and declining average deal size, was confirmed and continues to cap short-term catalysts such as a potential rebound in customer spend.

Among several announcements, the completed acquisition of IAR Systems stands out as particularly relevant; this move expands Qt’s capabilities within embedded software and is closely linked to the company’s efforts to offset short-term revenue volatility by broadening its product suite and market presence. This development is important given the ongoing challenge of restoring deal flow and margin traction following contract delays.

Yet, in contrast to the optimism around a product expansion, investors should not overlook the risk that persistent customer hesitation and postponed deals could...

Read the full narrative on Qt Group Oyj (it's free!)

Qt Group Oyj's outlook anticipates revenues of €303.0 million and earnings of €82.8 million by 2028. This is based on a projected annual revenue growth rate of 13.2% and an increase in earnings of €34.8 million from the current level of €48.0 million.

Uncover how Qt Group Oyj's forecasts yield a €58.00 fair value, a 63% upside to its current price.

Exploring Other Perspectives

The Simply Wall St Community submitted 7 fair value estimates for Qt Group, ranging widely from €37.69 to €97.64 per share. Despite recent profit warnings and flat revenue trends, many believe recovery depends on demand for embedded UI solutions, so it is worth considering various viewpoints on future growth and risk.

Explore 7 other fair value estimates on Qt Group Oyj - why the stock might be worth just €37.69!

Build Your Own Qt Group Oyj 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 Qt Group Oyj research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Qt Group Oyj research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Qt Group Oyj'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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