Carl Zeiss Meditec Bets on Tech and New Markets to Stem Losses

Carl Zeiss Meditec debuts AI software in the US while battling a severe profit collapse in China, forcing strategic shifts and cost-cutting measures.

Carl Zeiss Meditec is launching a new AI platform in the United States this week, even as the German medical technology group grapples with a severe financial downturn. The commercial debut of the ZEISS VisioGen software at the ASCRS conference in Washington highlights a strategic push for innovation, starkly contrasting with a first-quarter performance marred by plummeting profits and deep challenges in China.

The company’s revenue for the first quarter of fiscal 2025/26 fell 4.8% to 467 million euros. More alarmingly, its operating profit (EBITA) collapsed from 35 million euros to just 8 million euros. This dramatic squeeze pushed the EBITA margin down to 1.7%. The primary culprit is the Chinese market, which contributes roughly a quarter of group sales. Weak demand and intense price competition, particularly for intraocular lenses, have pushed the business there into the red.

In response to the pricing pressure from local competitors, which is expected to intensify due to new nationwide procurement tenders, Carl Zeiss Meditec is shifting parts of its production directly into China. Simultaneously, the firm is looking to diversify its revenue streams elsewhere in Asia. This week, it certified its first official reference center in Japan at the Kohnan Hospital. This facility will serve as a hub for clinical training and the deployment of AI-supported surgical platforms in ophthalmology, a move analysts see as an attempt to build higher-margin service business away from the cut-throat Chinese market.

The new U.S. product, VisioGen, is designed to integrate into practice websites to answer patient inquiries about procedures like cataract surgery. Notably, the system is not fully autonomous; specially trained optometrists review all AI-generated responses before they are sent to ensure medical quality. The launch is supported by new laser platforms for corneal surgery and a browser-based app called Collaborative Care for secure data exchange between physicians.

These developments unfold against a backdrop of significant internal uncertainty. The company currently operates without a permanent CEO following a profit warning in February. Investor sentiment has soured dramatically, with the stock down more than 55% over the past year and trading around 25.34 euros. From its peak in May 2025, the share price has fallen approximately 61%.

With such a weak start to the fiscal year, the company's previous full-year forecast of a 12.5% EBITA margin is now seen as nearly unattainable. All eyes are on May 12, 2026, when management will present half-year figures. The event is expected to deliver more than just updated guidance; the leadership must outline detailed reorganization and cost-cutting measures to stabilize the core business. Until then, the recently completed acquisition of specialist D.O.R.C., which strengthens its position in the growth segment of retinal surgery, remains one of the few positive fundamental anchors for the year.