ZEISS Half-Year Figures: Solid Performance, Clear Future Course
Geopolitical uncertainty contributes to even greater market caution
For the first half of the current fiscal year (ended March 31, 2026), the ZEISS Group reported slight revenue growth, with revenue totaling 5.841 billion euros (prior year: 5.794 billion euros, up 1%). Earnings before interest and taxes (EBIT) amounted to 955 million euros (up 33 million euros). The uncertainty in the global markets is still putting pressure on ZEISS' business. The segments’ highly uneven development, which was already evident at the end of 2025, has continued. Expenditure on research and development remains above the sector average at 14% of revenue. The number of employees worldwide is approximately 47,400.
"ZEISS completed the first half of the fiscal year with a solid result in a very challenging business environment," said Andreas Pecher, President and CEO of the ZEISS Group. Geoeconomic and geopolitical developments, including the conflict in the Middle East and strong negative currency effects, have placed a major strain on the global markets and reinforced existing trade barriers. "In light of this, ZEISS faces two fundamental challenges: first, declining momentum over several years in the direct-to-market segments and the resulting strong dependency on the Semiconductor Manufacturing Technology business; and second, the structures built up during the years of strong growth that are no longer efficient in all areas," explained Pecher.
After initially volatile conditions in the semiconductor market and a recent strong upturn in demand, the Semiconductor Manufacturing Technology segment posted revenue growth once again. All three direct-to-market segments faced a very difficult market environment and strong negative currency effects. The Industrial Quality & Research and Medical Technology segments were unable to increase revenue, and each posted a nominal single-digit decline in revenue. The Consumer Markets segment reported only slight revenue growth of 1%.
In addition, developments were very uneven globally and were marked by fierce competition in the markets. Despite this tense situation, the EMEA region was able to grow. "The ZEISS Group's result is a consequence of different economic trends and local conditions that are dampening growth prospects. This has led to a mixed business performance, which is also reflected in the EBIT," said Stefan Müller, Chief Financial Officer (CFO) of the ZEISS Group. "After years of strong growth, it is especially important now to optimize cost structures so that we continue to generate the funds for future investments."
At a glance: Key figures for the first half of the fiscal year
- Revenue: 5.841 billion euros (up 1% versus prior year)
- EBIT: 955 million euros (up 33 million versus prior year)
- R&D ratio: 14% of revenue (0.8 billion euros)
- Equity: 9.5 billion euros (equity ratio: 51%)
- Investments in property, plant, and equipment: 0.4 billion euros
- Employees worldwide: 47,400
Outlook
ZEISS does not anticipate that the economic conditions will improve in the second half of the fiscal year. "In particular, the ongoing uncertainty in the business environment is likely to persist and put further strain on our segments to different degrees. As a consequence, we must prepare for further revenue decline in the direct-to-market segments and mitigate risks," said Andreas Pecher.
Against this backdrop, the ZEISS Group is starting a comprehensive program to strengthen competitiveness. The goal is to create the conditions for a return to sustainable and profitable growth. On the one hand, this means that ZEISS will continue its above-average investments in innovation and markets – and thus in its future viability. On the other hand, targeted adjustments to the cost structure will be made in the segments as well as in the corporate administrative areas and the country organizations. This should achieve annual savings of several hundred million euros over the next three years, as compared to the prior fiscal year (2024/25).
The specific measures will be worked out in the coming months through close and constructive dialogue between the Executive Board, management, and employee representatives. Job reductions are also expected. ZEISS intends for the implementation to be transparent and equitable. "We are acting from a position of strength before the circumstances force us to act. As a foundation-owned company, we are responsible for the long-term success of ZEISS, for this and for future generations," said Pecher, commenting on the initiative.
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