Elekta Q1 FY27 slides: margins surge but revenue growth lags market

Elekta reported a decline in revenue growth for the first quarter of fiscal year 2026/27, with net sales decreasing 2% in constant currency. Despite this headwind, the company saw significant improvements in its profitability metrics, with adjusted gross margin expanding to 42.6% and adjusted EBIT margin reaching 11.2%. The decline in revenue was primarily driven by a 9% drop in Solutions sales, which fell to SEK 1,628 million, while Service revenue grew by 5% to SEK 1,909 million.

The stock price fell 5.57% to $51.75 in pre-market trading, indicating that investors focused more on revenue momentum rather than the margin gains. CEO Jakob Just-Bomholt acknowledged that Elekta is still not growing at the same pace as the market, which expands by around 6% annually.