Elekta stock steadies as Q1 2026/ 27 margin gains offset soft sales and fresh analyst target hike
Published on 08/28/2026 at 09:42 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS
Elekta AB (publ) stock (ISIN SE0000163628) is trading in a consolidation phase after the company reported first quarter 2026/27 results on August 27, 2026, showing stronger profitability but still subdued revenue growth.
The Q1 report for the period May to July 2026/27 confirmed higher margins and a reiterated full-year outlook, while market data as of August 27, 2026 shows the shares closing at SEK53.15 on Nasdaq Stockholm, down year to date but supported by a new price target of SEK68 per share.
For investors, the key near-term question is whether Elekta can convert margin gains and a healthy order book into more convincing top-line growth in the coming quarters.
Q1 2026/27 results highlight margin improvement
Per Elekta's first quarter 2026/27 communication for the period May to July 2026/27, management reiterated guidance for fiscal year 2026/27 calling for net sales growth of 2 percent to 4 percent in constant currency and an adjusted EBIT margin of 12.5 percent to 13.5 percent.
According to an earnings call summary for Q1 2026/27, Elekta reported that adjusted gross margin increased to 42.6 percent in the quarter, up from 37 percent in the same period a year earlier, reflecting a combination of higher software and service mix, price increases, and lower cost levels.
The same Q1 2026/27 summary indicates that Elekta's adjusted EBIT margin improved to 11.2 percent, supported by the stronger gross margin and lower selling and administrative expenses, showing clear progress toward the company's full-year margin ambition.
While profitability improved, Q1 2026/27 net sales declined 2 percent in constant currency compared with the prior year period, as weaker solution sales in regions including Asia-Pacific, China, and certain emerging markets offset growth in Europe and the Americas.
Order intake remained supportive, with a book-to-bill ratio of 1.11 in Q1 2026/27, indicating that incoming orders exceeded delivered revenue in the quarter and helping sustain Elekta's backlog.
A separate overview of recent figures for Elekta shows that non-GAAP earnings per share in the latest reported period were SEK0.69, with revenue of SEK3.54 billion, compared with SEK3.65 billion in the prior-year comparable period, implying a revenue decline of 3.02 percent year over year.
This combination of higher margins and slightly lower revenue underpins a nuanced picture for Elekta in early fiscal 2026/27: the turnaround plan is clearly improving profitability, yet top-line momentum remains modest and regionally uneven.
In the context of Elekta's guidance for 2 percent to 4 percent net sales growth and an adjusted EBIT margin of 12.5 percent to 13.5 percent for fiscal 2026/27, the Q1 2026/27 adjusted EBIT margin of 11.2 percent suggests that the company still has room to improve margins further over the remainder of the year to meet its target range.
Analyst target hike frames valuation debate
Recent coverage notes that an analyst has raised the price target on Elekta to SEK68 per share from SEK65 while maintaining a positive recommendation, signaling confidence that margin improvements and cost savings can support value creation despite near-term revenue headwinds.
The same update shows that Elekta shares last closed at SEK53.15 on Nasdaq Stockholm as of August 27, 2026, leaving the new SEK68 target 14.85 SEK above the latest closing price, which represents an upside of around 28 percent from that level if the target were reached.
Market data embedded in this analyst-focused overview also indicate that Elekta's shares have declined 3.01 percent over the previous five trading days and are down 4.32 percent since the start of 2026, suggesting that the stock has lagged broader markets even as margins have improved.
Additional consensus information in the same source points to an average price objective of SEK59.82 for Elekta, which sits 6.67 SEK above the latest closing price of SEK53.15, implying upside potential of 12.55 percent compared with the current level based on the mean target.
From a valuation perspective, a separate data-driven view highlights that one proprietary intrinsic value model estimates Elekta's intrinsic value at $6.95 per share, compared with a current price of $5.60 for the over-the-counter-traded instrument, indicating an undervaluation assessment in that framework.
While methodological assumptions differ across valuation models and price targets, the common thread is that Elekta's improved margins and cost savings are seen as supportive of intrinsic value, even though the market remains cautious due to softer revenue trends and regional weakness.
For investors considering Elekta, the spread between the latest closing price of SEK53.15 and both the SEK59.82 average target and SEK68 upper target underscores that much of the margin progress may not yet be fully reflected in the stock price.
At the same time, the modest revenue decline of 3.02 percent year over year and 2 percent drop in net sales in constant currency in Q1 2026/27 highlight that Elekta still needs to demonstrate more consistent top-line acceleration to justify the implied upside from these targets.
Turnaround plan and regional dynamics
According to the Q1 2026/27 call summary, Elekta's ongoing turnaround plan is delivering more than SEK500 million in cost savings, a figure that has been a key driver of the improved gross and EBIT margins and has allowed the company to absorb revenue softness while still progressing toward its margin goals.
The same presentation notes that Elekta's service sales grew 5 percent in the quarter, with growth across all regions, which helps stabilize revenue and margin levels, as service tends to carry higher and more recurring profitability compared with equipment-only sales.
Solution sales, by contrast, decreased 9 percent in Q1 2026/27, with the decline driven particularly by weaker demand or timing issues in Asia-Pacific, China, and certain other international markets, even as Europe and the Americas posted growth in the quarter.
These regional dynamics mean that Elekta's overall revenue picture in Q1 2026/27 is a mix of positive and negative trends: solid progress in core Western markets and service, offset by challenges in Asia and some emerging regions that remain critical for long-term expansion.
The reported refunds of U.S. tariffs imposed under the U.S. International Emergency Economic Powers Act contributed SEK53 million to gross profit in the quarter, corresponding to an impact of 150 basis points on gross margin, which is a non-recurring benefit but nevertheless supported the headline margin improvement in Q1 2026/27.
Net income for the quarter was SEK106 million, according to the earnings call figures, and adjusted earnings per share stood at SEK0.31 for the quarter, reflecting the combined effect of stronger margins, tariff refunds, and still subdued revenue growth.
Free cash flow before dividends and mergers and acquisitions was negative SEK266 million in Q1 2026/27, though this represented an improvement of SEK154 million compared with the prior year period, indicating progress in cash generation even if the company remains in an investment and transition phase.
For investors, these numbers point to a company that is still very much executing a turnaround: cost savings and margin gains are material, cash flow is moving in the right direction, but revenue and regional performance need further strengthening to build a more balanced growth profile.
Representative product: radiotherapy and radiosurgery solutions
Elekta is best known for its advanced radiation therapy and radiosurgery solutions used in oncology centers worldwide, offering systems and software that support precise, image-guided treatment of tumors while aiming to spare healthy tissue as much as possible.
The company develops integrated linear accelerators, treatment planning systems, and workflow software that help clinicians tailor radiotherapy regimens to individual patients, which is central to modern cancer care and a major driver of Elekta's equipment and service revenue.
Because these solutions require ongoing maintenance, software updates, and technical support, they underpin Elekta's growing service business, which has shown 5 percent growth in the latest quarter, supporting the company's shift toward more recurring, higher-margin revenue streams.
Elekta stock valuation anchored by latest price data
On Nasdaq Stockholm, Elekta's latest available closing price is SEK53.15 as of August 27, 2026, with recent performance showing a 3.01 percent decline over five trading days and a 4.32 percent decline since the start of 2026.
This price level sits below both the SEK59.82 average target and the SEK68 raised target mentioned in recent analyst coverage, underscoring that the market currently assigns a discount to Elekta's shares relative to these valuation benchmarks even as margins in Q1 2026/27 have improved and guidance for fiscal 2026/27 has been reaffirmed.
Fact box
Company: Elekta AB (publ)
ISIN: SE0000163628
Ticker: EKTA B
Exchange: Nasdaq Stockholm
Price (as of August 27, 2026): SEK53.15
Market cap: not stated in the cited sources
Sector / Industry: Healthcare equipment and services
Index membership: not stated in the cited sources
