Evotec Shares Plunge Over 30% After Slashing Full-Year Guidance

Shares of German biotechnology firm Evotec AG plunged by more than 30% on Tuesday after the company issued a severe profit warning, slashing its full-year financial targets and revealing a significant deterioration in its first-half performance.

The stock fell as much as 32.5% to an intraday low of €3.176, its lowest point in roughly a decade, following the late-Monday announcement.

Guidance Slashed on Weaker Performance

Evotec dramatically revised its full-year 2026 outlook, signaling a much weaker financial position than previously communicated to investors. The company's updated guidance includes:

• Full-Year Revenue: A new range of €570 million to €610 million, down sharply from the prior forecast of €700 million to €780 million.
• Adjusted EBITDA: A projected loss of between €70 million and €105 million, a stark reversal from the previous guidance for a profit of up to €40 million.

The downgrade followed preliminary first-half results that fell far short of expectations. For the first six months of 2026, Evotec reported group revenue of €300.1 million, down from €371.1 million in the same period last year. The adjusted EBITDA loss widened significantly to €42.7 million from just €1.9 million in H1 2025.

Investor Confidence Erodes

Ad

Management attributed the shortfall to operational delays. According to the company, approximately 40% of the revenue miss stemmed from postponed milestone payments from existing partnerships, while another 45% was due to slower-than-anticipated progress in finalizing new strategic collaborations.

The market's reaction underscored deep investor concern. The sell-off was company-specific, occurring while Germany's benchmark DAX index was trading modestly higher. An analyst cited by Investing.com described the news as "another significant profit warning," stating that Evotec must accelerate financial transparency to rebuild confidence.

Context and Outlook

The severity of the guidance cut, coupled with a pattern of previous forecast misses, has severely damaged the company's credibility with investors. While management pointed to its ongoing "Horizon" transformation program and a well-stocked research pipeline, the market's verdict was unforgiving.

The stock's collapse to a new 52-week low suggests investors are pricing in a prolonged period of uncertainty and require more concrete evidence of a turnaround before trust can be restored.