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Lonza Posts Strong Q1, Completes Shift to Pure-Play CDMO and Confirms 2026 Outlook

Story Highlights
  • Lonza delivered a strong Q1 2026, confirmed its 2026 growth and margin outlook, and continues to see robust CDMO demand despite FX and macro headwinds.
  • The group completed its shift to a pure-play CDMO with the CHI divestment, using proceeds to fund growth projects, targeted M&A, new capacity and a CHF 500 million buyback.
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Lonza Group Ltd ( (CH:LONN) ) just unveiled an announcement.

Lonza reported a strong Q1 2026 performance across its pure-play CDMO operations, with momentum in Integrated Biologics, Advanced Synthesis and a return to healthy growth in Specialized Modalities. Management reiterated guidance for 2026 of 11–12% constant-currency sales growth and CORE EBITDA margin above 32%, with performance weighted to the first half despite currency headwinds.

The company has completed its transformation into a focused CDMO by agreeing to sell its Capsules & Health Ingredients unit and divesting several smaller non-core businesses. Proceeds of CHF 1.7 billion from the CHI sale, plus a retained 40% stake, will fund organic expansion, bolt-on M&A and a CHF 500 million share buyback, reinforcing Lonza’s scale and positioning in a resilient outsourcing market.

Lonza is advancing major capacity projects including a large-scale mammalian facility in Visp due to start full commercial operations in mid-2026 and new drug product and bioconjugation plants scheduled for 2027–2028. Management highlights limited direct exposure to geopolitical tensions in the Middle East and to U.S. trade policies, and continues to see robust outsourcing demand from both large pharma and biotech clients.

The most recent analyst rating on (CH:LONN) stock is a Buy with a CHF670.00 price target. To see the full list of analyst forecasts on Lonza Group Ltd stock, see the CH:LONN Stock Forecast page.

More about Lonza Group Ltd

Lonza Group is a Switzerland-based contract development and manufacturing organization focused on the healthcare industry. It works with global pharma and biotech clients to develop and produce biologics, small molecules and advanced therapies, generating CHF 6.5 billion in sales and CHF 2.1 billion in CORE EBITDA in 2025.

Average Trading Volume: 177,554

Technical Sentiment Signal: Hold

Current Market Cap: CHF33.64B

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

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