SGS (SGSN) Q1 2026 TU earnings summary

Executive summary

• Achieved record Q1 2026 sales of CHF 1.75 billion, up 3.9% year-over-year, with 5.3% organic growth and 7.3% from acquisitions, offset by an 8.7% negative FX impact.

• Leadership in Digital Trust and AI offerings was reinforced through acquisitions, new labs, certifications, and AI integration, expanding capabilities in cybersecurity and connectivity testing.

• Integration of Applied Technical Services (ATS) is on track, delivering strong results and synergies.

• Scrip dividend take-up exceeded 61%, redirecting nearly CHF 400 million to strategic initiatives and supporting shareholder loyalty.

• 2026 outlook is confirmed, targeting 5–7% organic sales growth, ≥16% adjusted operating income margin, and >50% cash conversion, despite geopolitical uncertainties.

Financial highlights

• Q1 2026 sales reached CHF 1,747 million, up 3.9% year-over-year, with 12.6% constant currency growth; Swiss franc strength reduced reported growth.

• Organic sales growth was 5.3%, with scope effects adding 7.3% and adverse FX impact of -8.7%.

• Scrip dividend take-up of 61.35% enabled CHF 400 million to be redirected to growth initiatives.

Outlook and guidance

• 2026 outlook reaffirmed: 5–7% organic sales growth, 5–7% additional sales from acquisitions, ≥16% adjusted operating income margin, and >50% cash conversion.

• Geopolitical risks in the Middle East are being managed, with limited impact due to low regional exposure.

• Capital Markets Event scheduled for November 2026.