OBERKOCHEN, Germany—The Zeiss Group has reported slight revenue growth for the first half of its current fiscal year ending March 31, 2026, with revenue totaling €5.841 billion, up 1 percent from €5.794 billion reached in the same period the previous year. In making the announcement, Zeiss said “uncertainty in the global markets is still putting pressure” on its business, and that the segments’ “highly uneven development,” which was evident at the end of 2025, has continued. Earnings before interest and taxes (EBIT) amounted to €955 million, up €33 million euros from the prior-year period.
“Zeiss completed the first half of the fiscal year with a solid result in a very challenging business environment,” said Andreas Pecher, president and CEO of the Zeiss Group, referring to ongoing geoeconomic and geopolitical developments, including the conflict in the Middle East and strong negative currency effects, which they said have placed a significant strain on global markets and reinforced existing trade barriers.
“In light of this, Zeiss faces two fundamental challenges: first, declining momentum over several years in the direct-to-market segments and the resulting strong dependency on the semiconductor manufacturing technology business; and second, the structures built up during the years of strong growth that are no longer efficient in all areas,” Pecher said.
After what the company said was initially volatile conditions in the semiconductor market and a recent strong upturn in demand, the Semiconductor Manufacturing Technology segment posted revenue growth once again. Further, all three direct-to-market segments faced a difficult market environment and strong negative currency effects. The Industrial Quality & Research and Medical Technology segments were unable to increase revenue, the company stated, and each posted a nominal single digit decline in revenue. The Consumer Markets segment reported slight revenue growth of 1 percent.
In addition, the company reported, developments were uneven globally and were marked by fierce competition in the markets. Despite these concerns, Zeiss noted that the EMEA region was able to grow.
“The Zeiss Group’s result is a consequence of different economic trends and local conditions that are dampening growth prospects. This has led to a mixed business performance, which is also reflected in the EBIT,” said Stefan Müller, chief financial officer (CFO) of the Zeiss Group. “After years of strong growth, it is especially important now to optimize cost structures so that we continue to generate the funds for future investments.”
The company advised that expenditure on research and development remains above the sector average at 14 percent of revenue (€0.8 billion), and the number of employees worldwide is approximately 47,400. Equity was reported at €9.5 billion (equity ratio: 51 percent), and investments in property, plant, and equipment were reported as €0.4 billion.
Zeiss said it does not anticipate that the economic conditions will improve in the second half of the fiscal year.
“In particular, the ongoing uncertainty in the business environment is likely to persist and put further strain on our segments to different degrees,” said Pecher. “As a consequence, we must prepare for further revenue decline in the direct-to-market segments and mitigate risks.”
Against this backdrop, the Zeiss Group said it is starting a comprehensive program to strengthen competitiveness with the goal to create the conditions for a return to sustainable and profitable growth. It will continue its investments in innovation, markets and its future viability, the company advised; however, targeted adjustments to the cost structure will be made in the segments as well as in the corporate administrative areas and the country organizations. Zeiss noted that it anticipates this course should achieve annual savings of several hundred million euros over the next three years, compared with the prior fiscal year (2024/25).
Zeiss reported that the specific measures will be worked out in the coming months through close and constructive dialogue between the executive board, management and employee representatives, with job reductions to be expected. The company said it intends for the implementation to be transparent and equitable.
“We are acting from a position of strength before the circumstances force us to act,” said Pecher, commenting on the initiative. “As a foundation-owned company, we are responsible for the long-term success of Zeiss, for this and for future generations.”
