Bechtle Shares Plunge to Multi-Year Low on Cautious Outlook

Bechtle shares hit 7-year low after 2026 guidance disappoints. Management cites memory chip shortages, withholds firm forecast amid supply chain uncertainty.

Shares of German IT services provider Bechtle plummeted nearly 15% in a single trading session on Friday, hitting their lowest valuation in seven years. The dramatic sell-off was triggered by the company's newly unveiled 2026 forecast, which fell significantly short of market expectations. Management cited a tightening supply environment for memory chips as the primary cause for its restrained guidance.

Management Withholds Firm Forecast Amid Supply Chain Uncertainty

Citing volatile pricing and extended lead times for memory components, Bechtle's executives stated they are currently unable to provide a more detailed scenario for the full year. The company now plans to review its guidance at more frequent intervals, with greater clarity expected by mid-year. For the current fiscal year, Bechtle anticipates revenue and pre-tax profit growth of just zero to five percent. While business volume is projected to increase between five and ten percent, this target sits notably below recent analyst consensus.

2025 Results Highlight Margin Squeeze Despite Volume Growth

The company's finalized 2025 figures, also released, underscore the existing pressures. Business volume expanded by 8.1% to approximately €8.6 billion. However, revenue growth was limited to just 1.6%, and pre-tax earnings declined by 6.0% to €324.2 million. The operational margin was eroded by rising procurement costs for hardware components.

Despite these headwinds, the financial foundation remains solid. Operating cash flow stood at €289.8 million, and liquidity at the reporting date was €452 million. The dividend will be maintained at €0.70 per share.

Long-Term Ambition Meets Short-Term Reality

Since its initial preliminary announcement in February, Bechtle's stock has lost over 40% of its value. The share price touched a new 52-week low of €25.78 during Friday's trading. Management reaffirmed its long-term goal of growing business volume to over €10 billion by 2030. However, the credibility of this target is now seen as heavily dependent on how quickly supply chains for critical memory components stabilize.