Intershop Communications AG Sees Positive Outlook Despite Revenue Decline

On October 21, 2026, Intershop Communications AG released its nine-month financial results. The company's revenues fell by 7.1% year-on-year, although they surpassed expectations by 2.3%. Decreased license revenues, customer churn, and low investment activity contributed to the decline. Despite these challenges, strong cloud orders, improving net new Annual Recurring Revenue (ARR), and an increase in AI-related revenues hint at potential recovery.

The EBIT margin saw an improvement, rising from -5.6% to 0.9%, driven by cost reductions and better service profitability. Operating cash flow has also strengthened. Management expects a smaller revenue decline than in 2025 and balanced EBIT, aligning with predictions. The target stock price has been revised to EUR 2, up from EUR 1.9, maintaining a Buy recommendation.