Fresenius SE shares tumbled 3% Wednesday after the German healthcare giant projected 2026 core earnings per share growth of 5%-10%, below analyst expectations of 10.8%. The miss triggered volatility despite strong quarterly results, with revenue hitting €5.875 billion — the highest in Kabi unit history — and EBIT rising 13% to €713 million.

The company’s 2026 EBIT margin guidance of 11.5% lagged consensus estimates of 12%, while full-year core EPS of €2.87 fell short of market hopes. Analysts at Jefferies noted Fresenius’ Biopharma division emerged as a key growth engine, with 97% organic revenue growth in Q4 to €265 million driven by biosimilar launches. However, the firm’s raised 2026 organic revenue target (4%-7%) failed to reassure investors.

Helios hospital arm underperformed, with Germany’s EBIT margin slipping to 8.2% versus a 9.8% forecast. The dividend proposal of €1.05 per share — a 5% hike — offered limited comfort. Brokerages highlighted widening gaps between buyside expectations and Fresenius’ revised structural margin guidance of 17%-19%.

The selloff underscores market skepticism about Fresenius’ ability to sustain growth amid regulatory scrutiny and competitive pressures. With biosimilars forming a critical EBIT contributor, the stock’s reaction signals heightened scrutiny of execution risks in 2026. Jefferies maintains a buy rating with a €55 price target, but the profit warning raises questions about near-term catalysts.