Evotec SE (EVO) Stock Forecast & Price Target

Evotec is supported by a sequential recovery in revenues, with preliminary 9M26 sales of approximately €465.0M and implied 3Q26 revenue of €164.9M, up 14.9% QoQ and 0.6% YoY, signaling improving commercial momentum. Its positive outlook is reinforced by 1H26 D&PD net sales excluding strategic partnerships growing about 28% YoY, suggesting stronger underlying demand and better execution in its core discovery and preclinical activities. Although strategic partnerships and integrated programs take longer to convert, management expects the revenue benefit to emerge by late 2026 and into 2027, which, together with high customer engagement, supports a constructive fundamental view.

Evotec is facing a weakened fundamental outlook after cutting FY2026 revenue guidance to €570M-€610M and adjusted EBITDA to -€70M to -€105M, a sharp reset from €700M-€780M and €0M to +€40M, respectively. The downgrade reflects delayed milestone phasing across D&PD and JEB, underwhelming new strategic partnerships in D&PD, and slower sales-to-revenue conversion, all of which are pressuring a business with a high fixed-cost base and fewer high-margin milestones. The inclusion of impairment/reorganization costs of (5,011) and a reduced 2026 revenue estimate of €589M signals persistent operational strain, with D&PD sales expected to decline 15% year over year in 2026.