RaySearch Stock Plummets 27% After Warning of Q2 Revenue Shortfall

Shares of RaySearch Laboratories (STO:RAY-B) plunged 27.4% on Tuesday after the medical technology company issued a preliminary earnings warning for the second quarter of 2026. The Stockholm-listed firm's stock fell to 162 SEK, its lowest point in over a year, after disclosing that Q2 results would fall significantly short of market expectations.

Preliminary Results Disappoint

According to the company's preliminary disclosure, the second quarter was marked by a sharp decline in key financial metrics compared to the prior-year period. RaySearch flagged a significant year-over-year drop in both net sales and operating profit.

Key details from the preliminary report include:

• Net sales decline: The company reported an organic growth rate of -8% for the quarter.
• Profitability hit: Operating profit retreated sharply from the same period last year.

RaySearch management attributed the revenue shortfall to a cluster of deals in the United States that were postponed, not cancelled. This marks the second consecutive quarter of top-line pressure for the company, following a revenue contraction in Q1 2026.

Market Reaction and Outlook

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The market's reaction was severe, sending the stock to a 52-week low of 160.1 SEK during the session. The sharp sell-off reflects investor concern over the delayed revenue recognition and uncertainty surrounding the timeline for closing the postponed U.S. contracts.

The decline was company-specific, as the broader Swedish market, represented by the OMX Stockholm 30 index, saw only a modest slip. Until RaySearch provides more clarity in its full Q2 report, investor sentiment is expected to remain cautious.

Order Intake Shows Resilience

Despite the disappointing revenue figures, the company noted a constructive data point in its preliminary release. Order intake during the second quarter improved on a year-over-year basis, suggesting that underlying demand for its RayStation and RayCare oncology software platforms remains intact.

However, because revenue is only recognized when deals are finalized, the strong order book has not yet translated into sales. The key focus for investors will now be on when the delayed U.S. contracts will be finalized and contribute to the company's top line.