I=8
IONOS now expects revenue of €1,323 million (+6% y/y), down from €1,348 million previously guided but in line with my estimate
- IONOS now expects revenue of €1,323 million (+6% y/y), down from €1,348 million previously guided due to delays in customer projects.
- My estimate (Valuation Model-Google Sheets) was revenue €1,323 million (+5.9% y/y).
- It raised its adjusted EBITDA margin to 36.5% from around 35%, implying adjusted EBITDA of €480 million (+17% y/y).
- It guides 2026 revenue growth of 7% (my estimate: +4%) and adjusted EBITDA of around €530 million (+10% y/y).
- IONOS said a large portion of customers are already choosing services supported by AI.
- United Internet shares are little changed while and IONOS shares are up 1.3% following the report.
Assessment
Overall, I view the report as positive, particularly the 2026 guidance, which suggests that growth is not expected to decelerate as I had previously anticipated.