Summary:Slovenia’s largest pharmaceutical group has upgraded its 2026 outlook after delivering stronger revenue and profit growth in the first nine months. With operating profitability improving and investment accelerating, Krka is now targeting €2.18 billion in revenue this year and €474 million in net profit in 2027.
◉ Nine-month revenue reached €1.66 billion, up 8% year on year, while net profit increased 13% to €364.2 million.
◉ Operating profit rose 24% to €455.5 million, outpacing revenue growth and lifting the EBIT margin to 27.4%.
◉ Krka expects €439 million in 2026 net profit and is targeting €474 million in 2027, alongside revenue of €2.31 billion.
A stronger finish to 2026
Krka has raised its expectations for the full year after reporting a robust performance across the first three quarters of 2026. The Novo Mesto-based pharmaceutical group generated €1.66 billion in revenue between January and September, an 8% increase compared with the same period last year. Net profit climbed 13% to €364.2 million.
The improvement was even more pronounced at the operating level. EBITDA increased 21% to €527.9 million, while operating profit (EBIT) advanced 24% to €455.5 million. The figures indicate that profit growth is currently outpacing sales expansion, suggesting improved operating efficiency and a stronger contribution from the group’s product mix and cost structure.
Krka’s EBITDA margin reached 31.8%, compared with 28.5% a year earlier. Its EBIT margin also improved, rising from 23.9% to 27.4%. These margin gains are an important part of the results: the company is not simply selling more, but converting a larger share of revenue into operating earnings.
2026 targets move higher
Based on the nine-month performance, Krka now expects full-year revenue of €2.179 billion and net profit of €439 million. The projected profit is approximately €34 million above the previous plan, according to reporting on the revised outlook.
The updated forecast implies that Krka expects to maintain its momentum through the final quarter. Delivering the full-year targets will depend on demand across its international markets, product availability, pricing conditions, currency movements and the wider pharmaceutical environment.
2027: another year of expansion
Krka’s new business plan points to further growth in 2027. The group is targeting revenue of €2.308 billion and net profit of €474 million.
Compared with the company’s 2026 estimates, those targets represent approximately 6% revenue growth and 8% profit growth. The planned increase in earnings is therefore expected to exceed sales growth once again.
The outlook suggests management sees room to expand while maintaining profitability. However, these figures are business-plan targets, not guaranteed results. Their delivery will depend on the performance of individual markets and the group’s ability to sustain margins as it expands.
International markets remain central
Krka’s business is strongly international. According to the nine-month figures, 94% of product and service sales were generated outside Slovenia. Eastern Europe represented the largest regional share, at 36.7%, followed by Central Europe at 22.7% and Western Europe at 16.1%.
This geographic reach provides access to a broad customer base, but it also exposes the company to different regulatory systems, currencies, competitive pressures and economic conditions. Performance across these markets will remain a key factor in determining whether Krka can meet its 2027 ambitions.
Investment supports the next growth phase
The group allocated €87.3 million to investments during the first nine months, 31% more than in the same period last year. Research and development spending amounted to 9.1% of revenue.
Krka also added ten products to its portfolio, including nine prescription medicines and one veterinary product. The combination of product launches, research spending and investment in production capacity is central to its long-term strategy: strengthening its own development capabilities while supporting the supply of medicines across international markets.
What investors will be watching
For investors following the Ljubljana Stock Exchange, the latest results strengthen the operating picture behind one of Slovenia’s most closely watched blue-chip companies. Revenue growth remains solid, profit is advancing faster than sales, and management has set out a further expansion plan for 2027.
The next question is how much of this stronger outlook is already reflected in the share price. The results provide evidence of improving business performance, but they do not by themselves establish whether the stock is undervalued or overvalued. Investors will continue to assess the company’s execution, market conditions, valuation and ability to convert its targets into sustainable earnings growth.
Krka’s latest announcement puts the company on a stronger projected trajectory for both 2026 and 2027. The challenge now is to turn that momentum into consistent results across an increasingly complex international pharmaceutical market.
