Carl Zeiss Meditec reports lower earnings in the first half of 2025/26 – Comprehensive package of measures planned

JENA, 12 May 2026

Carl Zeiss Meditec recorded revenue of €991.0m in the first half of fiscal year 2025/26 (prior year: €1,050.5m), representing a decrease of -5.7% (or -1.0% when adjusted for currency effects0F[1]). Adjusted EBITA1F[2] amounted to €60.5m (prior year: €112.6m). The adjusted EBITA margin was 6.1% (prior year: 10.7%).

Justus Felix Wehmer, CFO of Carl Zeiss Meditec AG, commented:

"In the second quarter of 2025/26, we continue to operate in a challenging market environment characterized by geopolitical and regulatory uncertainties and a reluctance to make investment decisions. With a comprehensive package of measures, we are taking action to improve our cost structure, strengthen profitability and create flexibility for investments in growth and innovation."

Declining revenue in both strategic business units

Revenue performance in both strategic business units remained below the previous year's level in the first half of the 2025/26 fiscal year. Earnings were primarily impacted by significant negative currency effects as well as declines in the intraocular lens (IOL) business. This was further compounded by an increasingly weak investment climate in the Americas region against a backdrop of heightened geopolitical uncertainty.

In the Ophthalmology Strategic Business Unit (SBU), revenue declined to €753.8m (prior year: €808.2m; -6.7%, or -4.2% on a currency-adjusted basis). In addition to negative currency effects, performance was characterized by the exclusion of bifocal intraocular lenses from government tenders, as previously communicated in the first quarter of 2025/26. As announced, this also resulted in product recall from the distribution channel. In addition, device shipments – particularly for diagnostic devices – were lower than planned, which also weighed on performance.

At €237.2m, revenue in the Microsurgery strategic business unit was also down -2.1% on the previous year (prior year: €242.3m; adjusted for currency effects: +1.8%). This decline is primarily attributable to negative currency effects.

Recurring revenue accounted for 49.9% of total revenue in the first half of the 2025/26 fiscal year (prior year: 50.5%).

Regional performance – EMEA2F[3] stable, Americas and APAC3F[4] significantly lower

In the EMEA region, revenue amounted to €345.9m (prior year: €330.2m; +4.8%; +5.6% on a currency-adjusted basis). Growth was achieved in most core European markets, while the Middle East and Spain saw declines in revenue.

In the Americas region revenue decreased by -11.1% to €247.1m (prior year: €278.1m, -3.5% on a currency-adjusted basis). Performance was primarily characterized by a weak investment climate, particularly among small and medium-sized medical practices and clinics, as well as in the diagnostic equipment sector.

Revenue in the APAC region fell by -10.0% to €397.9m (prior year: €442.2m; -8.6% on a currency-adjusted basis). The positive growth trend in India was offset by lower revenue across China, Japan, South Korea, and Southeast Asia.

Earnings below prior year due to negative currency effects and unfavorable product mix

The operating result (EBITA) amounted to €39.0m in the first half of the 2025/26 fiscal year (prior year: €113.6m). This was mainly due to negative currency effects, lower revenue and a decrease in gross profit resulting from an unfavorable product mix. In addition, the result was weighed down by special items, including impairment charges on assets from the acquisition of Infinite Vision Optics, higher legal expenses, and the recall of bifocal intraocular lenses from the distribution channel. After adjusting for all special items, adjusted EBITA amounted to €60.5m (prior year: €112.6m).

The EBITA margin in the first six months of fiscal year 2025/26 was 3.9% (prior year: 10.8%). Adjusted for special items, the EBITA margin was 6.1% (prior year: 10.7%). Earnings per share amounted to €0.17 in the reporting period (prior year: €0.70), while adjusted earnings per share stood at €0.48 (prior year: €0.81).

Targeted measures planned to support sustainable profitability and growth

The Management Board, together with the Company's extended management team, has planned a comprehensive package of measures to ensure the future viability of Carl Zeiss Meditec AG. Restoring sustainable profitability is intended to lay the foundation for future investments in growth and innovation.

To this end, Carl Zeiss Meditec plans to implement sustainable cost, structural and portfolio measures and targets earnings improvements of >€200m p.a. by fiscal year 2028/29 compared with the current fiscal year 2025/26. Various measures are planned to achieve this goal: optimization of procurement supply chain, the clearing out of less profitable products within the portfolio, a stronger focus in R&D through the relocation of  activities to cost-efficient countries to achieve a competitive cost structure, as well as the reduction of administrative expenses through personnel and non-material cost cuts. As part of these measures, up to 1,000 positions across the global organization may be affected over the next three years.

Approximately €40m p.a. will be required through fiscal year 2028/29 to offset rising infrastructure costs. These include costs resulting from the implementation of a new ERP and Customer Relationship Management (CRM) system, the lease agreement for the high-tech site in Jena, and increased shared services costs within the Carl Zeiss Group. The net savings volume of >€160m p.a. remaining after the offsetting of rising infrastructure costs is expected to contribute to a sustainable recovery of the EBITA margin.

The saving measures will be complemented by targeted initiatives to accelerate revenue growth. As previously announced in December 2025, measures are being taken to optimize the Group's manufacturing site strategy. This includes a stronger presence in China and the expansion of cost-efficient capacities outside of China.

Andreas Pecher, President and CEO of Carl Zeiss Meditec AG, comments: “These decisions are painful, yet unavoidable in order to ensure that we remain competitive and successful over the long term. Carl Zeiss Meditec is thereby creating the foundation for what this transformation is ultimately intended to achieve: a strong company with stronger flexibility to invest in innovation and actively shape its market.”

In connection with the measures outlined above, one-off expenses and investments of up to €150m in total are expected through fiscal year 2028/29.

Outlook for the remainder of the fiscal year

In the 2025/26 fiscal year, revenue is expected to reach at least €2.15-2.20b (approx. -1% to ‑3.5% below the prior year). On a currency-adjusted basis, revenue is expected to remain broadly stable. The adjusted EBITA margin is expected to be between 8% and 10%, after excluding special items which are expected to amount to at least a mid-double-digit million-euro range.

Supported by the measures initiated, annual currency-adjusted revenue growth of at least in the mid-single-digit percentage range and a recovery of the adjusted EBITA margin to at least approximately 15% are expected by fiscal year 2028/29. In the long term, the EBITA margin is expected to recover to the previous target range of 16-20%.

Revenue by strategic business unit

Revenue by region

 Further information on our publication and the Analyst Conference Call on the results for the first six months of fiscal year 2025/26 can be found at

https://www.zeiss.de/meditec-ag/investor-relations/finanzkalender/telefonkonferenzen.html

Contact for investors and press

Sebastian Frericks

Head of Group Finance & Investor Relations

Carl Zeiss Meditec AG

Phone: 03641 220-116

Email: investors.med@zeiss.com
 

www.zeiss.de/presse

^[1] These primarily relate to the USD and CNY, with the CNY effects resulting from German exports invoiced in foreign currencies to the ZEISS Group's distribution network

^[2] Earnings before interest, taxes and amortization of intangible assets from purchase price allocations

^[3] Europe, Middle East and Africa

^[4] Asia/Pacific