Key Points – Evotec cut its 2026 outlook after preliminary Q2 and first-half results showed weaker-than-expected revenue conversion, delayed strategic partnership revenue, and slower new deal timing.
The company now sees full-year adjusted EBITDA at a larger loss than previously guided. – First-half performance is expected to decline sharply, with Q2 revenue down about 16% year over year and H1 revenue down 19%, while adjusted EBITDA turned negative
Weakness in the early drug discovery market and foreign exchange headwinds also weighed on results. – Despite the guidance cut, management said commercial activity is improving, with higher inbound inquiries, more proposals, and faster sales cycles in the base D&PD business. Evotec also said its partnership pipeline remains active, though many opportunities are unlikely to contribute materially to 2026 revenue. – Why These 3 Large Caps Are Bucking the August Slump Evotec (NASDAQ:EVO) reported preliminary unaudited results for the second quarter and first half of 2026 and lowered its full-year outlook, citing delayed strategic partnership revenue, slower conversion of commercial activity into revenue and longer timelines for new partnership agreements. Chief Executive Officer Christian Wojczewski said the company had previously warned of a difficult first half, reflecting continued weakness in the early drug discovery market and the absence of a $25 million Sandoz licensing payment recorded in the prior-year period.
However, he said expectations for a stronger second half have been revised because revenue from strategic partnerships is now expected to materialize later than previously anticipated. “While this revision is clearly disappointing, it is important to emphasize that it is primarily driven by the timing of partnership planning activities and ongoing partnership milestone revenues, rather than any fundamental change in these opportunities,” Wojczewski said. Revenue and EBITDA Decline in First Half Chief…