Nemetschek stock draws JPMorgan upgrade after Q3 report

Nemetschek stock traded at 65.45 euros on Lang & Schwarz at 12:04 CET on Monday, November 9, 2026, 1.08 percent above the Xetra close of Friday, November 6, at 64.75 euros.

The latest investor focus is split between the software group's strong reported growth and the slower organic momentum in parts of the business. JPMorgan upgraded Nemetschek to Overweight on Monday, according to Adalytica.

HCSS lifts reported growth

Nemetschek's third-quarter update, released on November 5, showed revenue of 371.1 million euros, up 26.6 percent year on year including HCSS, which was consolidated for the first time from July 1. Excluding HCSS, organic revenue reached 333.3 million euros, an increase of 13.7 percent on a reported basis and 12.5 percent adjusted for currency effects, according to the Nemetschek investor relations release.

Annual recurring revenue increased 35.8 percent to 1,462.2 million euros, while subscription and software-as-a-service revenue rose 52.4 percent to 321.9 million euros. The figures underline the group's shift toward recurring revenue, although the HCSS purchase price allocation reduced revenue by approximately 15 million euros in the quarter.

Profitability reflects acquisition effects

EBITDA rose 21.8 percent to 115.9 million euros, producing a reported margin of 31.2 percent. The company also reported an organic EBITDA margin of 34.8 percent. HCSS-related one-off merger and acquisition costs, the deferred revenue haircut and ongoing integration expenses weighed on reported profitability.

Net income attributable to shareholders fell 15.7 percent to 46.6 million euros, and reported earnings per share declined to 0.40 euros from 0.48 euros a year earlier. Adjusted earnings per share increased 20.0 percent to 0.66 euros, highlighting the difference between reported results and the underlying performance measure used by management.

The Build segment remained the main growth engine, with quarterly revenue up 56.6 percent to 190.8 million euros including HCSS. Design revenue grew 7.2 percent to 138.5 million euros, while Media revenue declined 2.7 percent to 29.5 million euros as customers faced budget constraints and longer purchasing decisions.

Full-year targets remain intact

Nemetschek maintained its 2026 target for currency-adjusted organic revenue growth of 14 to 15 percent and an EBITDA margin of 32 to 33 percent. The company expects HCSS to add around 600 basis points to currency-adjusted group revenue growth, including the purchase price allocation effect, while the acquisition is expected to dilute the reported EBITDA margin by around 150 basis points.

Management said the HCSS integration was progressing as planned and highlighted new AI-powered offerings including Archicad Max, Allplan Max, Bluebeam Max and the AI-powered Solibri suite. For investors, the central issue is whether recurring-revenue growth and the Build segment can offset weaker conditions in Media and the slower subscription transition in Design.

The real-time quote of Nemetschek stock remains the clearest short-term gauge of how the market is weighing the results and the broker upgrade.

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