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Diploma posts strong Q1 growth and steps up acquisition drive

Story Highlights
  • Diploma delivered 14% organic revenue growth in Q1 FY26, signalling a robust start.
  • Four Q1 acquisitions lift FY26 net acquisition growth to 3%, reinforcing earnings momentum.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Diploma posts strong Q1 growth and steps up acquisition drive

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Diploma ( (GB:DPLM) ) has provided an announcement.

Diploma PLC reported a very strong start to its 2026 financial year, with 14% organic revenue growth in the first quarter to 31 December 2025, underpinned by momentum in both its existing operations and its acquisition strategy. The group completed four acquisitions in the quarter worth around £75m, including Swift Aerospace, Hydraulic Seals Australia, WDS and Spring Solutions, extending its presence in aerospace fasteners, aftermarket seals, OEM machining capabilities and UK/European defence markets. Across the last two quarters Diploma has executed eight deals totalling about £130m, expected to contribute approximately £20m of annualised operating profit, and now assumes 3% net acquisition-led growth for FY26, up from 2%, while maintaining guidance for 6% organic revenue growth and an operating margin of about 22.5%, with growth heavily weighted to the first half.

The most recent analyst rating on (GB:DPLM) stock is a Buy with a £6600.00 price target. To see the full list of analyst forecasts on Diploma stock, see the GB:DPLM Stock Forecast page.

Spark’s Take on GB:DPLM Stock

According to Spark, TipRanks’ AI Analyst, GB:DPLM is a Neutral.

Diploma’s overall stock score is driven by its strong financial performance, which is the most significant factor, reflecting robust growth and cash generation. However, technical analysis indicates bearish momentum, and valuation metrics suggest the stock may be overvalued, which could limit future gains. The absence of earnings call insights and corporate events means these factors did not influence the score.

To see Spark’s full report on GB:DPLM stock, click here.

More about Diploma

Diploma PLC is a FTSE 100 group of specialist businesses that supplies critical products and value-added services across a wide range of markets, primarily in the US, Canada, the UK, Europe and Australia. Employing around 3,400 people, the company has delivered sustainable growth, compounding adjusted earnings per share at about 18% annually over the past seven years through a mix of organic expansion and acquisitions.

Average Trading Volume: 338,900

Technical Sentiment Signal: Buy

Current Market Cap: £7.59B

For detailed information about DPLM stock, go to TipRanks’ Stock Analysis page.

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