Why is Nemetschek stock sliding today?

Nemetschek SE stock is sliding 4.3% to trade at €72.45 after the construction and media software group published its third-quarter 2026 results before the market opened, revealing an organic growth miss that overshadowed otherwise solid headline numbers.

The company posted total revenue of €371.1 million, up 26.6% year-over-year, but organic currency-adjusted growth came in at only 12.5% — below the 13.6% consensus estimate — and decelerated from the 14.5% pace recorded in Q2 2026.

Reported earnings per share fell to €0.40 from €0.48 in the same period a year earlier, while adjusted EPS of €0.59 also missed the €0.62 consensus, compounding investor disappointment.

The headline revenue gain was largely driven by the first full quarterly consolidation of HCSS, the US construction software provider acquired on July 1, 2026, but the deal came with meaningful accounting headwinds: a roughly €15 million deferred revenue haircut under IFRS purchase price allocation rules weighed on the reported numbers.

Segment performance was uneven — the Design division grew only 6.5% organically against an 8.3% consensus, and the Media segment contracted 3.1% versus expectations of modest growth.

Ahead of the report, UBS had flagged the risk of an EBITDA miss due to acquisition-related costs and carried a Sell rating with a €52 price target, while JPMorgan maintained an Overweight view with a €110 target.

Despite the earnings miss, Nemetschek’s management confirmed its full-year organic guidance, continuing to target 14–15% currency-adjusted revenue growth and an EBITDA margin of 32–33% for 2026.

The broader German market offered no cover for the stock: the DAX 40 index was modestly positive on the day, meaning the selloff was entirely company-driven and ran counter to the prevailing market tone.

The combination of a decelerating organic growth trajectory, acquisition-related margin pressure, and a reported EPS that fell below year-ago levels proved too much for investors to overlook, sending shares toward the lower end of their intraday range of €67.50–€72.80 — still well above the 52-week low of €50.45 but a significant retreat from the 52-week high of €98.85.