Mips stock closed at SEK399.6 on Thursday, only slightly below its level a week ago, even after investors absorbed the fresh Q3 2026 report. The immediate read is mixed. The share price is hesitating while the business just printed a 59% jump in reported net sales and a 76% climb in adjusted EBIT, with an adjusted EBIT margin of 42.7%.
Short term traders are fixated on the lofty 61.9x P/E. Long term holders are more likely staring at that high margin helmet technology model and asking how long this level of profitability can last.
Love the high margin helmet tech engine at Mips but uneasy about paying a 61.9x P/E for it? Compare that quality premium with a broader list of solid operators in our 224 resilient stocks with low risk scores .
Q3 2026 Earnings Summary
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Q3 2026 Revenue vs. Q3 2025:215 million SEK vs. 135 million SEK (+59%)
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Q3 2026 Net Income (Excl. Extra Items) vs. Q3 2025:39 million SEK vs. 34 million SEK (+14.7%)
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Q3 2026 Basic EPS vs. Q3 2025:1.472031 SEK vs. 1.283454 SEK (+14.7%)
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Q3 2026 Adjusted EBIT Margin vs. Q3 2025:42.7% vs. 37.5% (+5.2 percentage points)
Ask Charlie what Mips' Q4 setup looks like after this beat .
Mips bull story: growth engines versus hard numbers
Supporters argue that Mips can lean on Europe, Moto and Safety to lift market share and earnings quality.
"Mips is experiencing strong organic growth, particularly in Europe, which may lead to an increase in revenue. As European consumer markets continue improving, Mips has the potential to boost its market share and sales volume in this region."
Q3 organic growth of 24% and year to date organic growth of 31% sit close to management's long term target of more than 30%. Moto organic growth of 46% and Safety organic growth of 34% show that Integra TX, Koroyd and Safety launches are converting into broad based volume gains rather than just price.
Mips bear story: tariffs, legal drag and U.S. exposure
On the flip side, the risk narrative leans heavily on legal friction and U.S. uncertainty.
"The ongoing legal dispute, although Mips is not directly involved, incurs significant legal costs that could negatively impact net margins and profits if such costs persist or escalate."
Legal and settlement expenses of SEK 37m in Q3, including a SEK 32m settlement, clearly hit reported profitability even as adjusted EBIT rose 76%. Management now describes the U.S. dispute as settled, with costs recognized and no expected spillover into Q4, so this particular legal overhang looks addressed, although tariff and demand risk for U.S. brands remains in the background.
One Narrative has put a figure on that disagreement. → See the Narrative with its higher Fair Value, assumptions and all .
Spot Potential Mispricing Early
Mips shows how solid reported earnings and a hesitant share price can appear together. The real opportunity could sit in stocks that could be undervalued before sentiment catches up.
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Company 1 - 33% below our estimate - uses added capacity and high horsepower engine platforms to secure more power contracts.
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Company 2 - 36% below our estimate - grows payment volumes as large digital platforms extend countries and channels on its integration stack.
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Company 3 - 32% below our estimate - expands higher margin maritime sensors and autonomous defence systems as multiyear programmes increase platform content.
Three companies from the same screener. Open 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 MIPS.ST .
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