Redcare Pharmacy's German Prescription Boom Fuels a Cautious Rebound

Redcare Pharmacy's Q1 2026 revenue jumped 18.3% to €848M, fueled by a 55% surge in German digital prescription sales. The stock rallied despite a steep annual decline.

A powerful surge in Germany's digital prescription business is providing a much-needed boost to Redcare Pharmacy, even as the online pharmacy giant works to overcome a steep share price decline and lingering investor doubts. Preliminary first-quarter figures for 2026, released on April 8, reveal a company growing robustly, led by an explosion in its core Rx segment.

Group revenue climbed 18.3% to €848 million for the quarter. The standout performance came from the German prescription business, where sales skyrocketed 55% to €168 million, handily surpassing analyst estimates of €162 million. This growth is being driven by the accelerating adoption of the company's "CardLink" solution, which allows customers to redeem digital prescriptions directly. Management attributes the strong start to the long-awaited impact of Germany's national e-prescription system.

The positive operational data sparked a double-digit share price jump mid-week, with the stock settling at €40.08 by the weekend. This rally offers a stark contrast to the stock's recent history; since the start of the year, Redcare shares have lost approximately 40% of their value and are down more than 65% over a twelve-month period, far from their 52-week high of €136.20.

Beyond the German Rx boom, the company showed stability across its operations. The over-the-counter (OTC) segment, comprising non-prescription products, proved robust with a 10.2% increase to €533 million. Geographically, growth was broad-based. In the DACH region, total revenue reached €692 million, an 18.9% increase. The international segment posted sales of €156 million, up 15.6%, while the Swiss prescription business grew 17.7% to €147 million. Redcare also expanded its active customer base by 1.1 million to 14.2 million users.

Analyst sentiment following the update was reaffirming. Deutsche Bank analyst Jan Koch reiterated a Buy rating with an unchanged price target of €99. Jefferies was even more optimistic, confirming its Buy recommendation and maintaining a €150 price target, citing the long-term opportunity in the digitizing prescription market.

Despite the strong quarterly beat, significant challenges remain. The company recently revised its medium-term EBITDA margin targets downward, shaking investor confidence. The current technical resistance level sits at the 50-day moving average around €50, a hurdle the stock has yet to reclaim. The slower-than-hoped growth in the OTC segment also continues to cast a shadow.

Redcare's full quarterly report, due on May 6, will provide a clearer picture of whether the Rx momentum is sufficient to underpin its full-year guidance. The company is targeting revenue growth of 13% to 15% for 2026 and an adjusted EBITDA margin of at least 2.5%. With the German prescription business currently growing at 55%—far above the targeted annual rate of 33%—the company has built a solid operational buffer. However, whether this can translate into improved profitability and restore lasting market confidence is the critical test ahead.