Hexagon just dropped its Q3 2026 report and the headline is clear. Profitability, not growth, is what is driving the story. The stock closed Friday at SEK106.05, capping a strong 90-day run, yet the fresh numbers show an earnings profile heavily shaped by a large one off gain sitting in the trailing figures.
That is where sentiment and reality may be drifting apart. Short term traders seem to be treating the recent rally as a clean read on earnings power while the accounts still carry the weight of that big non recurring boost to net income.
Like the quality of Hexagon's underlying business but uneasy that a one off gain is skewing the earnings picture? Take a look at our list of solid balance sheet and fundamentals stocks (204 results) .
Q3 2026 Earnings Summary
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Revenue (Q3 2026 vs Q3 2025):€1,049.1m vs €1,303.1m (lower reported quarterly sales year on year)
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Net Income (Excl. Extra Items, Q3 2026 vs Q3 2025):€446.0m vs a loss of €33.9m (swing back to profit)
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Basic EPS (Q3 2026 vs Q3 2025):€0.1661 vs a loss of €0.0126 per share (return to positive earnings per share)
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Net Profit Margin (Trailing 12 Months vs Prior 12 Months):50.1% vs 11.9% (materially higher trailing profitability, heavily influenced by a large one off gain of about €1.8b)
Tired of staring at dense earnings tables and trying to untangle one-off gains from recurring profits? Get a clear visual view of Hexagon's earnings quality and broader financial picture in the company report for Hexagon.
Hexagon bullish story meets improving profitability
Hexagon's bullish narrative around digital infrastructure gets some backing from the latest print. Adjusted EPS moved to €0.082 and net profit margin on a trailing basis sits at 50.1%, even if that is flattered by a roughly €1.8b one off gain. Autonomous Solutions and Manufacturing Intelligence both delivered solid organic progress according to management, with cost savings and tariff refunds helping margins. Cash conversion of 82% and a reduction in net debt to €489m point to a business that is generating real cash, not just accounting profit.
Bear case focuses on one offs and acquisition drag
The cautious view on Hexagon finds some support too. Reported revenue of €1,049.1m is lower than the €1,303.1m a year earlier, which challenges any simple growth story. That 50.1% trailing margin is heavily shaped by the large non recurring gain, so earnings quality needs careful attention. Management also flags that the Waygate deal is initially dilutive, with an estimated 150 bps EBITAC margin impact at group level. Investors focused on clean, repeatable profitability will likely treat these factors as reasons to be measured, despite the recent share price strength.
With large one off gains already distorting Hexagon's earnings profile, you should ask whether this is the full story on risk. Review the independently assessed risk analysis for Hexagon which shows 2 important warning signs
Hunt Mispriced Earnings Stories
Hexagon shows how clean earnings and one off gains can blur headline profit metrics. The real opportunity could be finding stocks that look mispriced before sentiment and fundamentals line up.
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Company 1 - 24% below our estimate - builds electrical distribution channels and acquires specialty distributors for data center and electrification projects.
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Company 2 - 36% below our estimate - expands an advisory platform where new senior hires and a larger deal pipeline support fee-based capital markets transactions.
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Company 3 - 45% below our estimate - ramps a new aluminum plant that lifts thermal product volumes and reduces tariff exposure through regional production.
That is three of the list. See the full list of 192 companies trading below our fair value estimates →
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include HEXA-B.ST .
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