Story
DocMorris Stock Surges on Accelerating Q2 Revenue Growth
Summary
Shares in the online pharmacy rallied after a second-quarter trading update revealed accelerating revenue growth, particularly in its key German prescription drug segment, reinforcing its path to profitability.
Shares of DocMorris AG (DOCM) rallied on Wednesday after the online pharmacy reported a strong second-quarter trading update, showing an acceleration in revenue growth and significant momentum in its key business segments.
Growth Accelerates in Q2
DocMorris announced that its external revenue for the second quarter of 2026 rose 15.2% in local currency to CHF 309.7 million. According to the company's update, this represents a significant step-up from the roughly 11% growth rate reported in the first quarter.
The company's most critical growth driver, the German prescription drug business, expanded by nearly 46% year-over-year, also accelerating from its Q1 pace. The Digital Services division, which includes TeleClinic and its marketplace, saw revenue surge 80% to CHF 13.9 million. Management reaffirmed its target to reach adjusted EBITDA breakeven during 2026 and stated it would provide updated full-year guidance with its half-year results on August 19.
Analyst Confidence and Strategic Outlook
AdToday's stock move builds on a recent catalyst from Deutsche Bank, which upgraded DocMorris to "buy" from "hold" two sessions prior. The bank more than doubled its price target to CHF 11.50 from CHF 5.50, citing a more attractive risk/reward profile and likely upside to 2026 guidance.
Analyst Jan Koch noted that the investment debate is shifting from funding risks toward earnings growth and cash flow improvement. The company's "AI-First" strategy, which targets at least CHF 15 million in annual cost savings through automation and a workforce reduction of about 100 roles, lends further credibility to its goal of achieving free cash flow break-even in 2027.
Market Reaction
The combination of accelerating growth and renewed analyst confidence pushed DocMorris shares to a new 52-week high of CHF 11.25 during intraday trading. The rally occurred despite the noted headwind of German drugstore giant Rossmann's intention to enter the mail-order pharmacy market, a concern that investors appeared to set aside in light of the strong quarterly figures.
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