Evotec SE (EVO) Stock Forecast & Price Target

Evotec is supported by sequential recovery, with preliminary 9M26 revenue of approximately €465.0M and 3Q26 revenue of €164.9M, up 14.9% QoQ and 0.6% YoY, while management reaffirmed FY26 guidance of €570–610M. The positive outlook is reinforced by stronger underlying demand, as 1H26 proposal value rose more than 20% and inbound inquiries increased about 30% YoY, suggesting improved conversion potential across the D&PD funnel. Although revenue recognition can lag due to long contract cycles in integrated programs and strategic partnerships, the 28% YoY growth in base D&PD net sales and expected conversion into 4Q26 and 2027 support a recovery thesis.

Evotec is facing deteriorating fundamentals after cutting FY2026 revenue guidance to €570M-€610M and adjusted EBITDA to -€70M to -€105M, reflecting a sharp decline from prior expectations and signaling weaker operating leverage. The downgrade is driven by delayed milestone timing across D&PD and JEB, a heavier reliance on still-uncertain strategic partnerships in D&PD, and slower sales-to-revenue conversion, all of which reduce near-term visibility and quality of earnings. Preliminary 2Q26 revenue of €143.5M also missed consensus, while liquidity of €465.6M and net cash of about €35M help cushion the balance sheet, they do not offset the pressure from a high fixed-cost base and fewer high-margin milestones.