Why is Coloplast stock declining today?

Coloplast stock is declining 2.3% today after the Danish medtech company reported full-year FY 2025/26 results that disappointed on the critical profitability line, with Q4 EBIT coming in at DKK 1,848 million — materially below analyst consensus expectations of around DKK 2,000–2,018 million.

The Q4 EBIT margin contracted to approximately 25% from 28% in the same period a year earlier, hurt by inflationary pressure on raw materials and freight, ramp-up costs at the new Portugal manufacturing facility, a stronger Hungarian forint, and ongoing headwinds in the Wound & Tissue Repair (Biologics) segment.

Q4 organic revenue growth of 5% was broadly in line with estimates, offering little offset to the profit shortfall.

Adding to the pressure, Coloplast’s FY 2026/27 guidance calls for an EBIT margin of around 25% in constant currencies — signaling no near-term margin recovery — alongside organic revenue growth of 5–7%.

The company also revised its medium-term 2030 financial ambitions, cutting its Wound & Tissue Repair growth target from previously around double-digit to mid-single digit, citing the impact of a 2026 US biologics reimbursement change that has structurally reset expectations for that segment.

Several analysts responded by trimming their price targets: Morgan Stanley lowered its target to DKK 418 from DKK 454 while reiterating an Equal Weight rating, and Oddo cut its target to DKK 412 from DKK 413, also reiterating Neutral.

The broader market backdrop offered limited support. Global equity sentiment was mixed today, with major U.S. indices under mild pressure, providing no meaningful tailwind for European healthcare names. The OMX Copenhagen 20, Denmark’s benchmark equity index, did not provide a strong buffer for Coloplast’s company-specific selling pressure.

Taken together, a third consecutive quarter of operating profit disappointment, a guidance framework that implies continued margin compression into FY 2026/27, downgraded long-term growth targets, and swift analyst price target reductions combined to drive Coloplast shares to a session low of 447 before recovering partially to trade at 470.2 — still well below the previous close of 481.4 and far from the 52-week high of 631.4.