Redcare Pharmacy Stock Soars on Prescription-Driven Earnings Beat

Redcare Pharmacy's Q1 2026 revenue beats forecasts, driven by a 55% surge in German prescription sales. Shares jump over 12% as the company reaffirms its full-year guidance.

A robust surge in its German prescription business has propelled Redcare Pharmacy shares sharply higher, offering a welcome reprieve for investors after a punishing start to the year. The online pharmacy’s preliminary first-quarter figures for 2026 handily exceeded market forecasts, triggering a double-digit percentage gain in its stock price on Wednesday.

The company reported group revenue of 848 million euros for the first three months, an 18.3% year-on-year increase that surpassed the analyst consensus estimate of 837 million euros. The standout performance came from its core market, where revenue from prescription medications in Germany skyrocketed 55% to 168 million euros, dramatically outpacing expectations of 162 million euros. This strength in the Rx segment continues the positive momentum established in the latter half of 2025.

Beyond prescriptions, the larger over-the-counter (OTC) goods business also expanded, posting growth of approximately 10%. The company's overall DACH segment, encompassing Germany, Austria, and Switzerland, saw revenue rise 18.9% to 692 million euros. Its Swiss subsidiary, Mediservice, contributed 147 million euros, a 17.7% increase, while international segment revenue grew 15.6% to 156 million euros.

Customer metrics strengthened in tandem, with active users climbing to 14.2 million from 13.1 million a year earlier. The company also reported an improved satisfaction score for its electronic prescription service, which rose to 76 points from 73.

The strong results were met with immediate investor enthusiasm. Redcare's stock jumped over 12% during the session, trading at 39.28 euros and marking a significant rebound from recent lows. The rally was supported by a broadly positive market environment, fueled by reports of a potential US-Iran ceasefire and falling oil prices, which benefited growth-oriented retail and healthcare stocks. Despite today's surge, the equity remains deeply negative for the year, down roughly 40% since January and ranking among the weakest performers in Germany's MDAX index for 2026.

Management reaffirmed its full-year 2026 guidance, which calls for total revenue growth of 13% to 15%. The company is targeting over 670 million euros in German prescription revenue, OTC growth of 8% to 10%, and an adjusted EBITDA margin of at least 2.5%. CEO Olaf Heinrich emphasized that the company has continued to gain market share in Germany's digital prescription segment.

Analysts responded positively to the update. Jefferies reiterated its buy rating on the stock with a 150-euro price target, with analyst Martin Comtesse describing the quarter as a constructive start to the financial year. He noted the seamless continuation of the prescription growth trend.

Investors will get a fuller picture when the complete Q1 financials are published on May 6, 2026. Before that, the company's annual general meeting on April 15 is expected to formally elect Hendrik Krampe as the new Chief Financial Officer. For the stock's recovery to be sustained, analysts say the company must consistently demonstrate this accelerated growth pace in electronic prescriptions in the coming quarters.