Sasha Jovanovic
4 min read
Addnode Group came into its Q3 2026 report with its stock at SEK64.2 after a strong 90 day run, up about 77%, and expectations running hot. The headline was clear: net sales reached SEK1,438m while net income landed at SEK109m, a sharp reset from the weak Q2 profit base.
On the surface that kind of earnings snapback might look like it fully validates the bullish thesis around high margin software and services. The real story sits in how much of that profit swing traces back to a powerful EBITA margin jump driven by cost efficiencies rather than pure demand.
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Q3 2026 Earnings Summary
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Revenue (Q3 2026 vs Q3 2025): SEK 1,438m vs. SEK 1,311m (up around 10%)
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Net Income (Q3 2026 vs Q3 2025): SEK 109m vs. SEK 54m (up around 102%)
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Basic EPS (Q3 2026 vs Q3 2025): SEK 0.80 vs. SEK 0.40 (up around 102%)
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EBITA Margin (Q3 2026 vs Q3 2025): 17.4%, with the prior year level not disclosed in this set of figures (margin driven higher by cost efficiencies and mix)
Ask Charlie what really powered Addnode Group’s Q3 margin jump.
Addnode’s Q3 Milestones Against The Bullish Case
The upbeat story around Addnode Group hinges on higher value software becoming more embedded with customers and lifting recurring revenue and margins over time.
“The group is embedding AI into existing workflow software in areas like IoT based asset management and public sector inspection systems. This can support higher value offerings, make Addnode more embedded with customers and potentially support revenue growth and margin resilience over time.”
Q3 provides some proof points. Process Management posted about 4% organic expansion with a multi-year high 24% EBITA margin, supported by the Stockholm AI-ready case management deal and other own-software activity. The group EBITA margin of 17.4% and improved cash flow indicate earnings quality that is tracking closer to that bullish script, although cost savings did much of the lifting this quarter.
That disagreement has a full argument behind it. → Uncover the higher Fair Value this Narrative argues for.
Bear Case Check: Addnode Growth Fears Partly Persist
The harsher view on Addnode Group questions whether weak demand and contract shifts are eroding the real growth engine.
“Currency adjusted organic growth in Q1 2026 was down 6% at group level, with Design Management at a 12% decline and PLM at a 4% decline. This suggests that underlying demand in key units is weak and that revenue and net margins may be more dependent on acquisitions than on the existing customer base.”
