Why did Verisure Plc shares drop significantly?

Verisure Plc shares dropped significantly due to investor concerns about artificial intelligence-related disruption and fourth-quarter earnings that fell short of analyst expectations.

What were Verisure's fourth-quarter financial results?

Verisure's fourth-quarter adjusted earnings were €420.6 million, which was below the €431.3 million average estimate compiled by Bloomberg.

What is Verisure's long-term growth outlook?

Verisure remains on track to deliver mid-term guidance of 10% annual recurring revenue growth and long-term adjusted Ebit margin expansion to 30%.

Home / Business and Economy / Verisure Stock Plummets Amid AI Fears

Verisure Stock Plummets Amid AI Fears

12 Feb

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Summary

Verisure Plc shares experienced their largest drop on record.
Fourth-quarter adjusted earnings missed analyst estimates.
CEO remains confident in future growth despite stock decline.

Shares in Verisure Plc experienced a significant drop, falling more than 17% to €10.35 in Stockholm trading. This marks the largest decline since the Swedish alarm group's initial public offering in October and falls below its IPO price of €13.25. The company's recent listing was a prominent European capital markets event, accounting for over half of the $7.23 billion raised on the Stockholm exchange in 2025.

Fourth-quarter results showed adjusted earnings before interest, taxes, depreciation, and amortization at €420.6 million, slightly under the €431.3 million average estimate. Verisure, however, reiterated its commitment to mid-term guidance, forecasting 10% annual recurring revenue growth and a long-term adjusted Ebit margin expansion to 30%.

CEO Austin Lally acknowledged disappointment with the share price performance but stressed a focus on delivery and long-term growth. Analysts maintain a positive outlook, with a 12-month average target price of €19.27, suggesting over 80% potential upside. The company's stock decline has occurred amidst broader concerns in the technology sector related to artificial intelligence.

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