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Evotec's 1H26 revenue drops 20%, EBITDA turns negative; valuation now cautious with slow upside expected.

Company Fundamentals
21 Sep 2026
Seeking Alpha
View Source
Bearish
Evotec's 1H26 revenue drops 20%, EBITDA turns negative; valuation now cautious with slow upside expected.

Evotec reported a nearly 20% decline in revenue for the first half of 2026, alongside a sharp drop into negative adjusted EBITDA, signaling worsening fundamentals. Confidence in management's future targets has diminished, leading to a valuation based solely on current performance without credit for future growth. Despite strong liquidity and some commercial progress, profitability remains elusive and turnaround timelines have been extended. The stock is considered a speculative buy at €18 per share, but investors should expect slow gains and elevated risks.

Evotec's market context includes a nearly 20% revenue decline in H1 2026 and a shift to negative adjusted EBITDA, reflecting challenges in profitability and extended turnaround timelines. For readers following the US health sector, here is Pluang's market snapshot as of Sep 21, 2026 11:31 WIB: out of 92 priced health-sector stocks, 48 rose and 44 fell. Notable movers include FLNA (Cassava Sciences Inc) with a 6.11% gain and ENVB (Enveric Biosciences Inc) up 6.04%, while XRAY (DENTSPLY SIRONA Inc) declined by 5.92%.

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