Nemetschek Q2 Revenue Growth Beats Estimates, Margins Slightly Miss

Nemetschek (ETR: NEKG) reported second-quarter revenue growth of 14.5% on a constant currency basis, slightly outpacing analyst expectations of 13.7%. The construction and media software specialist reaffirmed its full-year financial outlook, according to its Q2 2026 results.

Quarterly Performance Breakdown

The company's revenue growth moderated from the 17% pace set in the first quarter, a slowdown attributed to tougher year-over-year comparisons. However, the top-line result was strong enough to offset a slight miss on profitability.

Operating margins for the quarter came in at 27.9%, narrowly missing the analyst consensus of 28.3%. Despite the margin shortfall, the company's operating profit aligned with estimates due to the better-than-expected revenue performance. A key metric for the software-as-a-service model, annual recurring revenue (ARR), grew by 17.4% in the period.

Segment Growth and Outlook

Performance varied across Nemetschek's business segments, with the Build division leading the expansion despite a slowdown.

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• Build: Grew 24.5%, down from 29.8% in the first quarter.
• Design: Accelerated to 9.9% growth, up from 9.5% in the prior quarter.
• Media & Manage: Posted more modest growth of 3.3% and 4.6%, respectively.

Looking ahead, Nemetschek maintained its previously announced guidance for the full year. The company continues to forecast organic revenue growth of 14% to 15% and an operating margin between 32% and 33%.

HCSS Acquisition Impact

The company noted the financial effects of its HCSS acquisition. The deal is expected to add 6 percentage points to total revenue growth but will also create 150 basis points of margin dilution.

This negative impact on margins is due to deal-related costs and deferred revenue writedowns. Nemetschek stated that due to its accounting treatment, the full earnings contribution from the HCSS acquisition will not become visible until the second half of 2027.