Husqvarna (OM:HUSQ B) Reports Weaker Results, Is The Stock Below Fair Value?

Husqvarna (OM:HUSQ B) is in focus after reporting second quarter and half year 2026 results, with both sales and net income lower than a year earlier. This has put fresh attention on the stock’s recent weakness.

See our latest analysis for Husqvarna.

Husqvarna’s latest earnings have landed after a weak period for holders, with the share price at SEK37.13 and the 1-year total shareholder return down 32.4%, while the year to date share price return has fallen 20.25%. This suggests momentum has been fading even before this quarter’s softer sales and profit.

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The share price slide and weaker earnings now sit alongside Husqvarna trading at an implied discount to both analyst targets and some fair value estimates. The next step is weighing that gap against the market’s caution.

Most Popular Narrative: 20% Undervalued

On the most followed view of Husqvarna, a fair value of SEK46.20 sits above the latest close at SEK37.13, and that gap is built on specific growth and margin assumptions rather than sentiment alone.

The accelerating transition towards battery-powered, electric, and especially robotic outdoor equipment is expanding Husqvarna's addressable market and supporting double-digit sales growth in robotics and electrified categories. This is expected to support above-average revenue growth and higher net margins as a greater share of sales comes from higher-ASP, lower-servicing products.

Read the complete narrative.

The narrative leans heavily on how quickly higher margin categories could reshape Husqvarna's mix, what that means for earnings over time, and which future profit multiple might be needed to justify today’s projected fair value without relying on very aggressive assumptions.

Result: Fair Value of SEK46.20 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, Husqvarna still faces pressure from low cost robotics competitors and softer North American demand, and either factor could continue to weigh on margins and sales.

Find out about the key risks to this Husqvarna narrative.

Next Steps

If the mixed signals around Husqvarna leave you unsure, use that hesitation as a prompt to move quickly and stress test the story against the numbers yourself. You can start with the 4 key rewards and 1 important warning sign.

Looking for more investment ideas beyond Husqvarna?

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• Target reliable income by reviewing companies that currently feature as 453 dividend fortresses.
• Focus on quality at a reasonable price by scanning the 236 high quality undervalued stocks.
• Prioritize capital preservation first by searching through the 293 resilient stocks with low risk scores.

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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