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Elisa Oyj (HLSE:ELISA) Stock Tests Bull Case As Net Margin Slips To 15.2%

Simply Wall St · 2d ago

Elisa Oyj (HLSE:ELISA) has posted its Q2 2026 numbers with revenue of €552.3 million and basic EPS of €0.55, alongside trailing twelve month revenue of €2.25 billion and EPS of €2.13 that frame the latest quarterly print. The company has seen quarterly revenue hold in a tight range around the mid €500 million mark over recent periods, while basic EPS has moved between €0.36 in Q4 2025 and about €0.64 in Q3 2025. This gives investors a clear run of data points to compare against the latest €0.55 outcome. With net income and EPS trends set against a net profit margin that has eased over the past year, the focus now turns to how durable those margins look and what they imply for future cash generation.

See our full analysis for Elisa Oyj.

With the headline numbers on the table, the next step is to see how these results line up against the widely held narratives around Elisa Oyj, highlighting where the story is reinforced and where it gets tested by the data.

See what the community is saying about Elisa Oyj

HLSE:ELISA Revenue & Expenses Breakdown as at Jul 2026
HLSE:ELISA Revenue & Expenses Breakdown as at Jul 2026

Margins Ease as Net Profit Slips to €88.9 million

  • Q2 2026 net income excluding extra items came in at €88.9 million on revenue of €552.3 million, compared with a trailing twelve month net income of €342.2 million on €2.25b of revenue. This corresponds to a 15.2% net margin over the last year versus 16.4% a year earlier.
  • Consensus narrative suggests Elisa Oyj can lift margins over time, yet the recent net margin trend gives both support and pushback to that view:
    • Analysts expect margins to move from 15.3% to 17.9% in three years, while the latest trailing margin is 15.2%. Current profitability is therefore close to, but slightly below, the starting point analysts are using.
    • Quarterly net income has ranged from €58.6 million to €103.2 million since early 2025, so the €88.9 million this period sits in the middle of that band. This neither strongly confirms nor clearly contradicts the idea of a steady margin lift.

EPS Holds Around €0.55 While Bears Flag Execution Risk

  • Basic EPS in Q2 2026 was €0.55, very close to €0.57 in Q1 2026 and to the €0.56 level seen in Q1 and Q2 2025. The trailing twelve month EPS sits at €2.13 compared with €2.28 a year earlier.
  • Bears argue that execution risks around cost savings, project timing and competition could limit earnings progress, and the EPS pattern gives them mixed evidence:
    • The €0.55 to €0.64 EPS range from Q2 2025 to Q3 2025 shows Elisa Oyj has produced higher quarterly EPS than today. Bears may point to this when questioning how easily the business can grow from here.
    • At the same time, EPS has stayed close to the mid €0.50 range in four of the last six quarters, which suggests earnings have not fallen away sharply even with intense 4G competition and ongoing transformation work.
For readers who want to see how supporters of the cautious view connect these earnings to their thesis, have a look at the 🐻 Elisa Oyj Bear Case.

Valuation Flags a Gap to €63.68 DCF Fair Value

  • With the share price at €35.26, Elisa Oyj trades on a P/E of 16.5x versus a European telecom industry average P/E of 17.8x and a peer average of 20.9x. It also sits below the DCF fair value of €63.68, which implies a 44.6% discount to that model.
  • Bullish investors point to this valuation gap and expected earnings growth of about 5.94% a year as a key part of their case, and the current numbers give them clear talking points as well as some checks:
    • The discount to the €63.68 DCF fair value and to the 17.8x industry P/E supports the bullish idea that the stock price does not fully reflect the earnings profile implied by forecasts.
    • On the other hand, trailing EPS of €2.13 and modest 5 year earnings growth of 0.2% a year highlight that the valuation gap exists alongside a history of only slow earnings expansion, which bulls may want to see improve for that gap to close.
If you want to see how optimistic investors connect this valuation gap to future assumptions on revenue and margins, take a look at the 🐂 Elisa Oyj Bull Case.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Elisa Oyj on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With both risks and rewards in play for Elisa Oyj, it makes sense to look past the headlines and test the numbers yourself. To see where potential upside and downside might sit side by side, take a closer look at the 2 key rewards and 2 important warning signs.

Explore Alternatives to Elisa Oyj

Elisa Oyj is contending with easing net margins, a trailing twelve month EPS that is below last year, and only modest 5 year earnings growth of 0.2% a year.

If that mix of softer profitability and slow earnings progress leaves you wanting stronger growth potential, check out the screener containing 506 high quality undiscovered gems to spot companies with healthier momentum and fundamentals.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.