Seco Stock Surges 8.6% on Strong H1 Results and Record Q3 Forecast

Shares of Seco surged 8.6% to €3.40 after the Italian edge AI company released preliminary first-half 2026 results that surpassed its own guidance and came with a record revenue forecast for the third quarter. The stock's sharp rally made it a standout performer in a session where the broader Italian market was in decline.

Preliminary Results Exceed Expectations

Seco reported that its performance in the first six months of the year beat management's targets for a consecutive quarter. The results underscored the company's consistent execution and growing business momentum.

Key figures from the preliminary report include:

• H1 2026 Net Sales: €98.8 million, a slight increase over the same period in 2025.
• Q2 2026 Revenue: €50 million, representing 4% year-over-year growth.
• Q3 2026 Revenue Guidance: A record of approximately €60 million, which would mark roughly 25% growth year-over-year.

Margin Strength and Software Growth

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Beyond the top-line beat, the company demonstrated improving profitability. Gross margin expanded to 54.0% in the first half, up from 53.4% a year earlier. According to the company, this reflects resilient pricing power and effective supply chain management despite rising memory component prices.

The company’s higher-margin Clea software platform is also showing significant traction. The platform contributed €7.4 million in first-half revenue, with recurring revenues within that segment climbing 12% year-over-year to €4.8 million, signaling a successful push into software and services.

Outlook and Market Reaction

CEO Massimo Mauri stated that the results confirm the strength of the company’s strategic positioning. He noted that Seco is working with leading silicon vendors to introduce a new range of edge AI solutions. The strong outlook and results resonated with investors, especially given the challenging market backdrop.

Seco's gains contrasted sharply with the broader market, as Italy's FTSE MIB index fell -0.69% amid wider risk-off sentiment. According to Bloomberg data, analyst sentiment was already constructive heading into the report, with five buy ratings and no sell recommendations on the stock.