Earnings call transcript: SGS posts record Q3 2026 sales as digital trust grows

SGS reported record third-quarter sales of about CHF 2.0 billion, marking a 14.6% increase year-over-year. The company's organic growth reached 5.7%, driven by strong demand across its various business lines. Acquisitions, led by ATS, contributed 6.9 percentage points to growth, while currency movements added 2.0 percentage points.

Digital Trust, sustainability, and data centers were identified as major growth drivers. In the nine months, SGS's sales totaled CHF 5.7 billion, with a 10.0% increase in Swiss francs and a 13.1% increase in constant currency. Organic growth over this period was 5.6%, and M&A contributed 7.5 percentage points to that growth. Management stated that full-year guidance remains on track, and the expected M&A scope effect has been revised upward to about 7.0%.

For the fourth quarter, executives expressed optimism and predicted solid performance in the coming months. They highlighted the importance of Digital Trust, sustainability, and Business Assurance as key growth areas. Analysts forecast a 10% revenue growth for fiscal 2026, with EPS expected to reach $5.08. SGS has maintained dividend payments for 27 consecutive years, currently yielding 1.58%.