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Diploma posts strong Q1 with 14% organic growth and ramps up acquisitions

Story Highlights
  • Diploma delivered 14% organic revenue growth in Q1 FY26, while reaffirming full-year guidance for 6% organic growth and robust margins.
  • The group accelerated its buy-and-build strategy with eight acquisitions over two quarters, lifting net acquisition growth guidance to 3% and strengthening its market reach.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Diploma posts strong Q1 with 14% organic growth and ramps up acquisitions

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An update from Diploma ( (GB:DPLM) ) is now available.

Diploma PLC reported a very strong start to its 2026 financial year, delivering 14% organic revenue growth in the first quarter and maintaining guidance for full-year organic revenue growth of 6% and an operating margin of about 22.5%. The group completed four acquisitions in the quarter for approximately £75m, extending its presence in aerospace fasteners, aftermarket hydraulic seals, OEM machining capabilities and UK/European defence, contributing to a total of eight deals worth around £130m over the last two quarters with expected annualised operating profit of about £20m. Management also increased net acquisition growth guidance to 3% from 2%, underlining strong deal momentum and a healthy pipeline that reinforces Diploma’s strategy of compounding growth through bolt-on acquisitions in attractive end markets.

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 provide critical products and value-added services across a wide range of end markets. Employing around 3,400 people, the company operates primarily in the US, Canada, the UK, Europe and Australia, and has delivered sustained growth in adjusted earnings per share over recent years through a combination of organic expansion and acquisitions.

Average Trading Volume: 338,900

Technical Sentiment Signal: Buy

Current Market Cap: £7.59B

For a thorough assessment of DPLM stock, go to TipRanks’ Stock Analysis page.

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