Husqvarna just reported Q3 2026, and the headline is blunt. A seasonally small quarter tipped into a loss, with basic earnings per share swinging to a loss of SEK 0.70 on revenue of SEK 9,012m, and the share price has already retreated over the past month and quarter.
On the screen, a stock that closed at SEK 31.5 and has fallen around 9% over 30 days looks like a company in trouble. On paper, the real story is a profit squeeze in a weak quarter colliding with a cost cutting and cash focused plan that has not yet shown up in the income statement.
If you like Husqvarna's market position but are uneasy about a quarter where profit flipped to a loss and the turnaround plan is still invisible in earnings, you can balance that mix of quality and resilience by comparing it with our list of solid balance sheet and fundamentals stocks (203 results) .
Q3 2026 Earnings Summary
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Revenue (Q3 2026 vs Q3 2025):SEK 9,012m vs. SEK 9,204m (decline of 2.1%)
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Net Income/Loss (Q3 2026 vs Q3 2025):loss of SEK 403m vs. loss of SEK 10m (loss widened materially)
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Basic EPS (Q3 2026 vs Q3 2025):loss of SEK 0.70 per share vs. loss of SEK 0.02 per share (loss per share increased sharply)
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Trailing 12-Month Net Profit Margin (Q3 2026 vs prior year):2.3% vs. 3.0% (margin pressure with lower profitability)
Skip the slide deck spin. Ask Charlie what Husqvarna's SEK 4bn cost cuts really target .
Husqvarna bull case meets a harsh earnings reset
Optimists argue Husqvarna's robotics and greener gear will steadily reshape the business mix and lift quality of earnings.
"Leadership in robotics and sustainable equipment, supported by innovation, is driving rapid market share gains and recurring revenue opportunities in both professional and consumer segments."
Q3 shows that story is still mostly about potential rather than financial proof. Organic sales declined 5% and the quarter slipped into an operating loss of SEK 246m with basic EPS at a loss of SEK 0.70. Pro robotics and Gardena watering are growing, but margin pressure and weak Forest & Garden volumes kept that leadership from showing up in higher profitability.
Husqvarna bear case on competition and margins gets support
Skeptics focus on cheap rivals in robotics and structural cost pressure. This quarter gives that worry more weight.
"Intensifying competition from low-cost Asian manufacturers, especially in the entry and mid-range robotics segments, is contributing to aggressive price pressure, resulting in price reductions and negative price impacts... which can erode net margins and profitability over time."
Husqvarna reported a widened quarterly loss, a trailing 12‑month net profit margin of 2.3% versus 3.0% a year earlier, and margin headwinds from underabsorption and cost inflation despite earlier price increases. Management is leaning on a SEK 4b cost out and a footprint shift to asset light production, which suggests internal efficiency work needs to offset the external price squeeze rather than ride on strong top line growth.
One Narrative has put a figure on that disagreement. → See the Narrative with its higher Fair Value, assumptions and all .
Hunt Mispriced Stories With Teeth
Husqvarna's weak Q3 print shows how quickly sentiment can shift when profit gives way to losses. The real opportunity lies in finding companies that could be undervalued before the market closes the gap.
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Company 1 - 34% below our estimate - uses scarce offshore vessels and industry consolidation to secure firmer contract terms and higher day rates.
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Company 2 - 27% below our estimate - raises project fees while integrating acquired teams and lifting utilization toward the group's stronger internal billing benchmarks.
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Company 3 - 22% below our estimate - embeds AI copilots into everyday workflows so existing software customers pay more for measurable productivity improvements.
That is three of the list. See all 196 potentially undervalued companies →
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 HUSQ-B.ST .
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