Original-Research: Reply SpA - from Quirin Privatbank Kapitalmarktgeschäft
Classification of Quirin Privatbank Kapitalmarktgeschäft to Reply SpA
Strong AI demand supports growth On July 30, 2026, Reply released its H1 financial results. Revenue growth was strong (7.4% yoy to EUR 1,311.9m), exceeding our expectation by 2.4%. Growth was driven by AI projects moving into production, supporting data, cloud and cybersecurity demand, while Silicon Shoring helped win consolidation projects. Region 1 benefited from Germany's recovery, Region 2 improved following business development investments, and Region 3 was supported by strong UK government and defence demand. France and the US remained comparatively weak. The H1 EBITDA margin declined from 18.3% to 17.8%, in line, as productivity gains and personnel cost discipline were offset by higher services costs, regional investments and the absence of prior-year one-off income. Management did not publish guidance for 2026 but expects sustainable growth and disciplined cost management. Structural AI demand supports the investment case, although selective spending and regional weaknesses remain risks. We leave our target price unchanged at EUR 170 and confirm our Buy recommendation. You can download the research here: REPLY_SPA_20260803 For additional information visit our website: https://research.quirinprivatbank.de/ Contact for questions: Quirin Privatbank AG Institutionelles Research Schillerstraße 20 60313 Frankfurt am Main research@quirinprivatbank.de https://research.quirinprivatbank.de/ The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. | ||||||||||||||||||
2376546 03.08.2026 CET/CEST
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