Sinch (OM:SINCH) Stock Faces Rich P/E As Q2 Profit Recovery Tests Bullish Narratives

Sinch (OM:SINCH) opened Q2 2026 with revenue of SEK 6.99b and basic EPS of SEK 0.16, while trailing twelve month figures show SEK 27.24b in revenue and basic EPS of SEK 0.59 as the company continues to put distance between current earnings and last year’s large one off loss. Over recent quarters, revenue has moved from SEK 6.73b in Q2 2025 to SEK 6.99b in Q2 2026, with basic EPS shifting from SEK 0.03 to SEK 0.16 as profitability stabilised around higher margins. For investors, the key takeaway this quarter is how firmly those margins now hold against the backdrop of still cautious expectations.

See our full analysis for Sinch.

With the latest numbers on the table, the next step is to line them up against the big narratives around Sinch, testing where the earnings story supports the consensus view and where it starts to push back.

See what the community is saying about Sinch

Sinch’s SEK 459m profit over last 12 months

• Over the last 12 months, Sinch has reported SEK 459m in net income on SEK 27.24b in revenue, with basic EPS at SEK 0.59 on a trailing basis after a period that previously included a large one off loss of SEK 226m.
• Consensus narrative points to AI driven products and omnichannel messaging as long term growth drivers. The modest forecast revenue growth of about 3.5% a year versus a Swedish market forecast of a 1.5% decline means the recent return to SEK 459m of profit is still being achieved on relatively steady top line progress rather than rapid sales expansion.

Q2 net income of SEK 116m tests bullish growth story

• In Q2 2026, Sinch posted net income of SEK 116m on SEK 6,991m of revenue, compared with SEK 104m in Q1 2026 and SEK 25m in Q2 2025. This gives bulls a cleaner earnings base now that the earlier SEK 226m one off loss is out of the current quarter numbers.
• Bulls argue that earnings can grow about 35.3% a year, yet recent quarterly results highlight a more gradual pattern. This Q2 print is best viewed as a step on that path rather than clear proof that the higher growth profile is already evident.
  • Trailing basic EPS has moved from a loss a year ago to SEK 0.59, which supports the bullish argument that Sinch has turned the corner on profitability. Quarterly EPS at SEK 0.16 is still some distance from the longer term analyst expectations described in the bullish narrative.
  • Revenue of SEK 6,991m this quarter compares to SEK 6,603m in Q1 2026 and SEK 6,732m in Q2 2025. This fits with the forecast of around 3.5% annual revenue growth rather than the much faster expansion some bullish scenarios discuss, so investors may want to separate the confirmed shift into profit from the more ambitious growth claims.

For a deeper look at how bullish investors see Sinch’s AI and messaging earnings story playing out against these Q2 numbers, check out the 🐂 Sinch Bull Case.

High 59.3x P/E versus DCF fair value of SEK 69.13

• On the valuation side, Sinch trades on a P/E of 59.3x against peer and Swedish software industry averages of 23.3x and 21.9x. A DCF fair value of SEK 69.13 sits above the current share price of SEK 37.84, so the stock is priced at a premium multiple even though the DCF model points to upside from here.
• Bears focus on that high 59.3x P/E as a sign that the market already prices in strong earnings growth, and the current financials give them some support, because the trailing EPS of SEK 0.59 and net income of SEK 459m are still relatively low compared with what would be needed to bring the multiple closer to industry levels without any share price move.
  • Analyst targets in the provided data center around SEK 39.63, only slightly above the current SEK 37.84 share price. This lines up with the cautious view that a lot of the earnings recovery is already reflected in the market value even with the DCF fair value sitting higher.
  • The inclusion of a SEK 226m one off loss in prior trailing figures means reported earnings quality has been noisy. Bears point to this as a reason to treat the present 59.3x P/E cautiously until several more quarters of clean, SEK 100m plus net income are visible.

Skeptical investors who see that 59.3x P/E and want to pressure test the cautious case against Sinch’s recent profit recovery should walk through the 🐻 Sinch Bear 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 Sinch on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

If this mix of cautious optimism and concern around Sinch resonates with you, consider reviewing the data yourself and weighing both sides of the story using the 3 key rewards and 1 important warning sign.

See What Else Is Out There Beyond Sinch

Sinch’s high 59.3x P/E, modest forecast 3.5% revenue growth and relatively low trailing EPS highlight a lot of optimism priced into limited earnings progress.

If that mix of rich valuation and cautious expectations makes you uneasy, compare Sinch with companies in the 237 high quality undervalued stocks to see stocks where pricing and fundamentals may be better aligned.

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.

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