How Strong Q3 Results and New M&A Ambitions At HMS Networks (OM:HMS) Have Changed Its Investment Story

• HMS Networks recently reported third quarter 2025 earnings, with sales reaching SEK 894 million and net income of SEK 164 million, alongside an announcement from CEO Staffan Dahlstrom highlighting plans to pursue further acquisitions as part of a balanced growth strategy.
• The company's commitment to growth through both internal development and continued acquisitions stands out, with half of future expansion expected to come from each source according to its CEO.
• We'll assess how the strong earnings growth, combined with renewed acquisition ambitions, influences the current investment outlook for HMS Networks.

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HMS Networks Investment Narrative Recap

To be a shareholder in HMS Networks, you need conviction in the company's ability to drive both organic and acquisition-fueled growth without losing operational focus. The recent strong third-quarter earnings and the renewed push for acquisitions reinforce management's ambitions, although the most important near-term catalyst, sustained organic growth, remains largely unchanged by this update, while the risk of weakening core sales performance is unchanged as well.

The recently announced reorganization of HMS Networks into three autonomous divisions, Industrial Data Solutions, Industrial Network Technologies, and New Industries, may prove especially relevant. This structural shift, announced just before the latest earnings and acquisition update, is intended to sharpen commercial execution, and may affect operational efficiency, a key factor in supporting the company’s growth plans.

But investors should be mindful that even with rising sales and acquisition activity, any slip in organic sales growth...

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

HMS Networks is projected to achieve SEK 5.1 billion in revenue and SEK 1.0 billion in earnings by 2028. This outlook assumes a 15.4% annual revenue growth and an earnings increase of SEK 631.3 million from the current SEK 368.7 million.

Uncover how HMS Networks' forecasts yield a SEK496.67 fair value, a 6% downside to its current price.

Exploring Other Perspectives

Two perspectives from the Simply Wall St Community value HMS Networks shares between SEK496.67 and SEK595. While opinions differ widely, ongoing organic growth remains crucial for supporting the company’s ambitious expansion plans. Explore how others view HMS Networks’ prospects.

Explore 2 other fair value estimates on HMS Networks - why the stock might be worth as much as 12% more than the current price!

Build Your Own HMS Networks 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 HMS Networks research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free HMS Networks research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate HMS Networks' 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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