EarningsQ2 2026 Earnings Report
DE:CSF Q2 2026 EPS Results
Actual EPS€4.82
Consensus EPS€4.67
Beat/MissBeat by +€0.16
One Year Ago EPS€4.27
DE:CSF Q2 2026 Revenue Results
Actual Revenue€10.95B
Expected Revenue€5.51B
Beat/MissBeat by +€5.43B
YoY Revenue Growth+6.66%
Earnings Announcement Details
QuarterQ2 2026
Date07/23/2026
TimeBefore Open
Conference CallThursday, July 23, 2026
DE:CSF Upcoming Earnings
Thales's next earnings date is estimated for March 9, 2027, based on past reporting schedules.
Q2 2026 Earnings Call Audio
No earnings call audio is available for this earnings event.
Q2 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call presents a strongly positive commercial and financial performance in H1 2026: robust order intake (+22% org), solid underlying sales growth (~9.6% excluding one‑offs), margin expansion (group adj. EBIT margin 12.5%), exceptional free cash flow (~EUR 1.8–1.9bn) and a substantial reduction in net debt (to ~EUR 500m). Defence and Aerospace outperformed materially, and management upgraded key guidance (book‑to‑bill and cash conversion), while continuing to invest in R&D and strategic M&A (Exail). Principal negatives are concentrated in Cyber & Digital (profitability pressures in Digital Identity and Payments) and a one‑off satellite cancellation (-EUR 153m sales). Given the scale and materiality of the positive metrics and guidance upgrades versus the limited number of specific headwinds, the overall tone is clearly positive.Company Guidance
Strong Order Intake and Book-to-Bill
Order intake reached EUR 12.5 billion in H1 2026, up 22% organically year‑on‑year, with a book‑to‑bill ratio of 1.14 (above 1), driven mainly by Defence & Space (18 large orders > EUR 100m, 13 in Defence).
Robust Sales Growth (Underlying)
Group sales were EUR 10.9 billion, up 7.8% organically in H1. Excluding the one‑off cancellation impact of 2 geostationary satellites (-EUR 153m), underlying organic sales growth was ~9.6%.
Improved Profitability
Adjusted EBIT rose to nearly EUR 1.4 billion, up ~10% reported (11% organically), with group adjusted EBIT margin improving to 12.5% (guidance for FY 2026 of 12.6%–12.8% confirmed).
Adjusted Net Income Growth
Adjusted net income (group share) increased sharply by 13% to EUR 990 million for H1 2026.
Exceptional Free Operating Cash Flow and Debt Reduction
Free operating cash flow was exceptionally strong at around EUR 1.8–1.9 billion in H1 (≈3x H1 2025). Net debt fell to ~EUR 500 million at mid‑year from EUR 1.6 billion at 31 Dec 2025, representing ~EUR 3 billion reduction over 12 months.
Defence Segment Outperformance
Defence order intake of EUR 7.4 billion, up 28% organically; Defence sales EUR 6.3 billion, up 13% organically; adjusted EBIT for Defence increased 22% organically and margin improved to 13.8% (from 12.8%).
Aerospace Recovery and Profitability Improvement
Aerospace orders EUR 3.3 billion, up 24% organically. Aerospace adjusted EBIT margin rose 130 basis points to 10.4%. Excluding the 2 cancelled telco satellites, Aerospace sales would have grown ~8.8% organically.
Cyber Momentum and Product Investment
Cyber business resumed growth (Cyber sales up 1.6% organically; Q2 Cyber +4.5%) and the group increased R&D by 9% (to 6.2% of sales), investing in future offerings (next‑gen HSM Luna 8, AI security fabric planned for 2027).
Strategic Milestones and M&A
Key strategic moves: planned acquisition of Exail to strengthen autonomous underwater warfare and inertial navigation; partnerships and consortiums (Destinus, Airbus Defence & Space / MBDA / Safran / Destinus Bliksem EXO) and enlarged partnership with Google for trusted cloud in Germany.
Upgraded Cash Conversion and Book‑to‑Bill Guidance
Guidance upgrades: expected 2026 book‑to‑bill now above 1.1; adjusted net income to free operating cash flow conversion rate upgraded to 100%–110% for 2026; confirming 2026 organic sales growth target of 6%–7% (EUR 23.3–23.6 billion).
DE:CSF Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed