DAX Slightly Down, European software sector is performing well

Market sentiment on the German equity market is moderately optimistic today, although the index has given back part of its recent gains. The benchmark remains above 24,000 points but is down a modest 0.2% on the day.

• Rheinmetall shares continue to rise following a positive recommendation from Bernstein; meanwhile, Ukraine has submitted a revised peace plan with Russia to the United States.
• Carl Zeiss shares are also trading higher today, supported by revenue growth.
• Delivery Hero is under pressure after rating changes from Citi and Cantor Fitzgerald.
• Audi will sell a majority stake in the Italian design studio Italdesign Giugiaro SpA to U.S.-based UST.
• The key macro release globally today will be U.S. jobless claims (14:30 CET).
• The European software sector is performing well despite a more than 10% drop in Oracle (ORCL.US) following its earnings in the U.S.
• After the U.S. close, Costco and Broadcom will report earnings.
• The index is holding above the two key moving averages: the EMA50 (orange line) and EMA200 (red line).

Source: xStation5

Carl Zeiss Meditec under pressure

Carl Zeiss Meditec (AFX.DE) posted solid Q4 2025 revenue growth of 7.8% year-over-year to EUR 2.228 billion, despite a challenging market environment and headwinds from tariffs and FX movements. However, the stock is trading at new historical lows today, partly due to tariff impacts and intensifying competition limiting upside potential.

• Earnings per share came in at EUR 1.61, with adjusted EPS at EUR 1.90, confirming stable operational improvement.

• Equipment sales grew 2.3%, while consumables surged 15.2%, significantly improving revenue quality.

• The company achieved a 50% share of recurring revenue for the first time, strengthening its resilience to cyclical volatility.

• The order book rose an impressive 18.2% year-over-year to EUR 2.288 billion, signaling strong demand into the next fiscal year.

• EBITDA increased 3.5% to EUR 258 million, although the margin slipped slightly to 11.6% from 12% a year earlier.

• The company maintained a strong competitive position in key markets such as China and Japan despite regulatory pressure and growing local competition.

• Integration of the digital unit into existing business segments is expected to boost operational efficiency and accelerate product scaling.

• Management expects mid-single-digit organic revenue growth next year and revenue of around EUR 2.3 billion, with an EBITDA margin target near 12.5%.

• Over the next 3–5 years, the company aims for mid- to high-single-digit organic growth and an EBITDA margin of 16–20%, indicating clear ambitions for expansion and improved profitability.

• Management stressed the strategic importance of maintaining a presence in China, noting that absence from this market could pose significant business risks.

• U.S. tariffs added more than EUR 10 million in costs, while negative FX effects exceeded EUR 20 million, weighing heavily on Q4 margins.

• Rising competition from local players and regulatory uncertainty remain major risks for the medtech segment in China.

• China’s VBP (volume-based procurement) model continues to put pressure on pricing and margins, posing ongoing challenges for the sector.

Source: xStation5

Bernstein upgraded Rheinmetall (RHM.DE) to “outperform,” with a price target of EUR 2,050 per share. The stock recently hit an all-time high of EUR 2,000 and is currently trading about 20% below that level.

Source: xStation5

Citi lowered its target price for Delivery Hero (DHER.DE) to EUR 19 per share, while Cantor Fitzgerald issued a “neutral” rating with a target of EUR 21.5. Both recommendations suggest limited upside from current levels.

Source: xStation5

The material on this page does not constitute financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other specific needs. All information provided, including opinions, market research, mathematical results and technical analyzes published on the Website or transmitted To you by other means, it is provided for information purposes only and should in no way be construed as an offer or solicitation for a transaction in any financial instrument, nor should the information provided be construed as advice of a legal or financial nature on which any investment decisions you make should be based exclusively To your level of understanding, investment objectives, financial situation, or other specific needs, any decision to act on the information published on the Website or sent to you by other means is entirely at your own risk if you In doubt or unsure about your understanding of a particular product, instrument, service or transaction, you should seek professional or legal advice before trading. Investing in CFDs carries a high level of risk, as they are leveraged products and have small movements Often the market can result in much larger movements in the value of your investment, and this can work against you or in your favor. Please ensure you fully understand the risks involved, taking into account investments objectives and level of experience, before trading and, if necessary, seek independent advice.

Register a Revolut Business Account