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Evotec AG (EVO)
NASDAQ:EVO
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Evotec AG (EVO) AI Stock Analysis

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EVO

Evotec AG

(NASDAQ:EVO)

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Neutral 46 (OpenAI - 5.2)
Rating:46Neutral
Price Target:
$2.00
▲(3.09% Upside)
Action:Reiterated
Date:07/15/26
EVO’s score is held down primarily by weak financial performance (declining revenue, deep losses, and negative free cash flow) and bearish technicals (price below all key moving averages with negative MACD and very weak RSI/Stoch). The earnings call provides some offset via reiterated guidance, restructuring-driven cost savings plans, and expected liquidity support, but near-term results and restructuring charges keep risk elevated; valuation is hard to anchor due to negative earnings and no dividend data.
Positive Factors
Strong liquidity position
A large cash buffer (EUR ~445m) plus an expected ~USD100m inflow materially reduces short-term refinancing risk and funds the Horizon transformation. This strengthens the company's ability to invest in commercialization, absorb restructuring costs, and support partner programs over the next 2–6 months.
Negative Factors
Declining revenue & weak margins
Sustained revenue declines and deeply negative margins reflect structural earnings weakness. Unless top-line stabilizes and higher-margin services scale, losses will persist, limiting the company's ability to generate durable profits in the 2–6 month horizon despite cost measures.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong liquidity position
A large cash buffer (EUR ~445m) plus an expected ~USD100m inflow materially reduces short-term refinancing risk and funds the Horizon transformation. This strengthens the company's ability to invest in commercialization, absorb restructuring costs, and support partner programs over the next 2–6 months.
Read all positive factors

Evotec AG (EVO) vs. SPDR S&P 500 ETF (SPY)

Evotec AG Business Overview & Revenue Model

Company Description
Evotec SE operates globally as a dedicated partner, specializing in the discovery and advancement of new pharmaceutical products for the biotechnology and pharmaceutical sectors. Its comprehensive research and development initiatives encompass a b...
How the Company Makes Money
Evotec primarily makes money by providing R&D services and platform-based drug discovery/development work to partners under contract. Key revenue streams generally include: (1) Fee-for-service and research payments: Evotec conducts discovery, prec...

Evotec AG Earnings Call Summary

Earnings Call Date:May 06, 2026
(Q1-2026)
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% Change Since: |
Next Earnings Date:Aug 13, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: significant near-term financial weakness driven by the nonrecurrence of a large prior-year license payment, FX headwinds, negative adjusted EBITDA and substantial restructuring charges contrasted with clear strategic actions and early signs of commercial stabilization. Management initiated the Horizon transformation, added experienced leadership, pointed to improving commercial leading indicators (higher proposal activity, faster turnaround, fewer change orders and net sales orders +15% YoY), and maintained full-year guidance while highlighting expected structural savings (~EUR 75m run-rate by end-2027, with ~20–30% in 2026) and an anticipated USD 100m cash inflow in Q2. Given material near-term negatives balanced against concrete transformation moves, underlying Just momentum (ex-Sandoz) and improving D&PD indicators, the overall tone is cautious but constructive.
Positive Updates
Revenue and Guidance Maintained
Q1 group revenues of EUR 156.6m; company confirmed full-year 2026 revenue guidance of EUR 700m–EUR 789m (EUR 730m–EUR 810m at constant FX) and adjusted EBITDA guidance of EUR 0m–EUR 40m (EUR 10m–EUR 15m at constant FX), with performance expected to be weighted to the second half.
Negative Updates
Sharp Year‑over‑Year Revenue Decline (Reported)
Reported Q1 group revenues declined 21.7% year-over-year (EUR 43.4m) to EUR 156.6m; on a constant currency basis revenues decreased 16.6% to EUR 166.9m, driven by FX headwinds, one-off prior-year license revenue and softness in early drug discovery demand.
Read all updates
Q1-2026 Updates
Negative
Revenue and Guidance Maintained
Q1 group revenues of EUR 156.6m; company confirmed full-year 2026 revenue guidance of EUR 700m–EUR 789m (EUR 730m–EUR 810m at constant FX) and adjusted EBITDA guidance of EUR 0m–EUR 40m (EUR 10m–EUR 15m at constant FX), with performance expected to be weighted to the second half.
Read all positive updates
Company Guidance
Evotec reiterated full-year 2026 guidance of EUR 700–789m in revenues (EUR 730–810m at constant FX) and adjusted EBITDA of EUR 0–40m (EUR 10–15m at constant FX), expecting improvement in both revenue and profitability weighted to the second half; Horizon targets structural run‑rate savings of ~EUR 75m by end‑2027 with ~20–30% (≈EUR 15–22.5m) to materialize in 2026. In Q1 the company reported revenues of EUR 156.6m (‑21.7% YoY; ‑16.6% CC to EUR 166.9m) and adjusted group EBITDA of ‑EUR 21.9m (‑EUR 18.9m CC), recorded EUR 75m of reorganization provisions, and held EUR 444.8m of liquidity (excluding expected ~USD 100m Tubulis proceeds in Q2). By segment, D&PD revenues were EUR 119.9m (‑14.7% reported; ‑10% CC to EUR 126.6m) with adjusted EBITDA of ‑EUR 9.8m (‑EUR 5.5m CC), and Just‑Evotec revenues were EUR 36.8m (‑38%; CC EUR 40.4m) with adjusted EBITDA of ‑EUR 12.1m (‑EUR 13.4m CC); FX was a EUR 10.2m headwind and the non‑recurrence of a $25m (~EUR 23.1m) Sandoz license were key drivers—excluding FX and Sandoz, group revenues fell 6% while Just‑Evotec underlying revenues rose 11% (non‑DoW/non‑Sandoz growth ~50%). Commercially, net sales orders were ~15% higher YoY, proposal activity hit a 12‑month high and proposal turnaround times improved below the 2025 average.

Evotec AG Financial Statement Overview

Summary
Overall fundamentals are pressured by declining TTM revenue (-5.2%), weak profitability (gross margin ~11% with deeply negative operating and net margins), and negative free cash flow (TTM ~-€45m) despite positive operating cash flow (~€18m). Balance-sheet leverage has improved (debt-to-equity ~0.13), but continued losses and cash burn remain the dominant risk.
Income Statement
28
Negative
Balance Sheet
62
Positive
Cash Flow
38
Negative
BreakdownMar 2026Mar 2025Mar 2024Dec 2022Mar 2022
Income Statement
Total Revenue757.26M796.97M781.43M751.45M618.03M
Gross Profit62.66M114.88M175.05M174.06M151.54M
EBITDA-13.89M-80.66M24.13M-57.61M316.63M
Net Income-99.43M-196.08M-83.91M-175.66M215.51M
Balance Sheet
Total Assets1.78B1.91B2.25B2.26B2.24B
Cash, Cash Equivalents and Short-Term Investments476.19M396.80M604.11M707.31M858.50M
Total Debt447.50M443.54M815.35M506.67M512.92M
Total Liabilities964.64M959.98M1.13B1.07B857.48M
Stockholders Equity813.36M952.52M1.12B1.19B1.38B
Cash Flow
Free Cash Flow-78.74M-114.02M-179.56M24.46M3.29M
Operating Cash Flow-9.06M18.22M36.44M205.81M122.24M
Investing Cash Flow159.86M-71.19M-13.29M-412.80M-243.85M
Financing Cash Flow-30.93M-161.42M71.96M-58.15M398.43M

Evotec AG Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.94
Price Trends
50DMA
2.57
Negative
100DMA
2.68
Negative
200DMA
3.05
Negative
Market Momentum
MACD
-0.23
Positive
RSI
25.12
Positive
STOCH
1.96
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVO, the sentiment is Negative. The current price of 1.94 is below the 20-day moving average (MA) of 2.21, below the 50-day MA of 2.57, and below the 200-day MA of 3.05, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 25.12 is Positive, neither overbought nor oversold. The STOCH value of 1.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EVO.

Evotec AG Risk Analysis

Evotec AG disclosed 10 risk factors in its most recent earnings report. Evotec AG reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Evotec AG Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$1.80B19.2817.32%37.03%
70
Outperform
$879.21M11.6610.23%-1.39%-41.70%
69
Neutral
$1.15B14.9326.74%19.88%73.61%
68
Neutral
$1.04B216.300.73%4.57%
64
Neutral
$2.59B-87.27-2.73%16.29%-145.12%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
46
Neutral
$698.91M-3.14-24.55%2.13%-1.13%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EVO
Evotec AG
1.91
-1.97
-50.77%
PCRX
Pacira Pharmaceuticals
26.41
3.47
15.13%
SUPN
Supernus Pharmaceuticals
44.63
7.58
20.46%
ANIP
ANI Pharmaceuticals
79.24
13.81
21.11%
AMPH
Amphastar Pharmaceuticals
19.94
-1.46
-6.82%
COLL
Collegium Pharmaceutical
35.39
4.30
13.83%

Evotec AG Corporate Events

Evotec Slashes 2026 Revenue and Earnings Outlook After Weak First Half
Jul 14, 2026
Evotec SE, a Hamburg-based drug discovery and development specialist listed on Nasdaq and Frankfurt, provides integrated research services and co-development capabilities to global pharma and biotech clients. Its operations are capital-intensive, ...
Evotec SE Reports Goldman Sachs’ Voting Rights Stake Rising to 14.62%
Jun 30, 2026
On June 30, 2026, Evotec SE reported a change in major shareholdings, disclosing that The Goldman Sachs Group, Inc. had crossed a regulatory threshold in voting rights on June 23, 2026. According to the notification, Goldman Sachs now controls 0.1...
Evotec SE Discloses June 15 Share Sale by Management Board Member
Jun 17, 2026
On June 16, 2026, Evotec SE disclosed a director’s dealing involving managing board member Dr. Cord Dohrmann, in line with EU market-abuse and transparency rules for transactions by persons discharging managerial responsibilities. The filing...
Evotec SE Posts Weak Q1 2026 but Doubles Down on ‘Horizon’ Transformation and Mid-Term Growth Targets
May 6, 2026
Evotec SE reported first-quarter 2026 results on May 6, showing a 22% year-on-year revenue decline to €156.6 million and an adjusted Group EBITDA loss of €21.9 million, reflecting continued softness in drug discovery and development an...
Evotec Strengthens Supervisory Board and Strikes Governance Pact With MAK Capital
Apr 30, 2026
Evotec SE, a Germany-based life science and drug discovery specialist, has built proprietary platforms such as Molecular Patient Databases, PanOmics and iPSC-based disease modelling, alongside its Just – Evotec Biologics unit for biologics d...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 15, 2026