Dutch technology leader Nedap N.V. has announced its financial results for the third quarter of 2026, highlighting steady progress in its “Step Up!” strategy. The company, which specializes in bridging the physical and digital worlds through its Digital Twin Technology, recorded solid revenue growth driven by strong performance in its healthcare and retail divisions. A key highlight of the period is the continued acceleration of recurring revenue, which is increasingly serving as a stable foundation for the company's long-term growth.

Financial Performance and Recurring Revenue Momentum

During the third quarter of 2026, Nedap's total revenue reached €76.0 million, representing a 7% increase compared with the €71.3 million recorded in the third quarter of 2025. For the first nine months of 2026, total revenue rose to €228.1 million, up 11% from €206.1 million in the same period of the previous year.

The growth was particularly pronounced in the company's key markets, which grew by 9% in the third quarter of 2026 compared with the third quarter of 2025. This brought the year-to-date growth in key markets to 12%.

A central pillar of Nedap's strategic evolution is the transition toward subscription-based business models. This shift is reflected in the rapid growth of recurring revenue:

  • Recurring revenue for the third quarter of 2026 rose by 17% to €32.4 million, compared with €27.8 million in the third quarter of 2025.
  • Year-to-date recurring revenue reached €95.7 million, up 17% from €82.0 million in the first nine months of 2025.
  • Recurring revenue now represents 42% of total revenue for the first nine months of 2026, outpacing total revenue growth and providing a highly predictable revenue stream.

Rob Schuurman, CEO of Nedap, commented on the strategic progress: "We remain on track with our Step Up! strategy. The third quarter reflects continued customer demand for our solutions, with recurring revenue again growing faster than total revenue. As this base grows, it provides an increasingly strong foundation for sustainable long-term growth and value creation."

Segment Analysis: Healthcare and Retail Drive Growth

Nedap's diverse portfolio across its key markets showed varying dynamics during the quarter, with Healthcare and Retail emerging as the primary growth drivers.

Healthcare: Integrated Care Records Adoption

In the Healthcare segment, revenue increased during the third quarter of 2026. Nedap successfully strengthened its market position in both disability care and elderly care. The growth was supported by an increasing number of care organizations adopting the company's treatment records. This trend reflects a broader industry shift toward integrated ways of working, where care professionals and practitioners collaborate seamlessly within the same digital record.

Retail: RFID Expansion and the VF Corporation Partnership

The Retail segment experienced strong revenue growth in the third quarter of 2026. Nedap secured new customer acquisitions, including retailers adopting Radio Frequency Identification (RFID) technology for the first time, as well as those replacing their existing technology providers.

The adoption of Nedap's retail solutions is expanding beyond basic inventory counting into advanced operational use cases, such as:

  • Automated replenishment systems
  • On-shelf availability tracking
  • Overhead inventory visibility

Additionally, Nedap's RFID-enabled self-checkout portfolio achieved its first large-scale deployments during the quarter.

A major highlight in this segment is the partnership with VF Corporation, which exemplifies Nedap's “Inventory Engine” vision. This initiative aims to connect inventory visibility across physical stores and the broader supply chain. The planned rollout is highly ambitious, covering more than 1,500 stores across VF Corporation's brand portfolio. The project will also extend to distribution centers and vendor partners to establish comprehensive, end-to-end inventory visibility.

Navigating Challenges: Livestock Transition and Security Stability

While Healthcare and Retail posted strong gains, the Livestock and Security segments faced specific transitional and external challenges.

Livestock: Shift to Subscription Models

Revenue within the Livestock segment declined in the third quarter of 2026 compared with a strong third quarter in 2025. According to the company, this decline was primarily due to the timing of deliveries and a deliberate, ongoing transition toward subscription-based offerings.

Despite the lower overall revenue, recurring revenue within Livestock increased as customers increasingly adopted the company's as-a-service offerings. Nedap's installed base continued to expand across multiple regions. The company notes that long-term demand drivers for cow monitoring and automation remain highly robust, fueled by global labor scarcity, increasing farm scale, and the ongoing need for operational efficiency.

Security: Stable Performance Amid Regional Delays

Revenue in the Security segment remained broadly stable during the third quarter of 2026. The division faced headwinds from geopolitical instability in the Middle East, which continues to delay customer rollouts for Nedap's security solutions in that region.

Despite these delays, the company achieved significant milestones in its security portfolio:

  • Nedap Pace went live at the first building on the Bayer CropScience Campus in Monheim. This deployment is part of Bayer's “AllAccess” program, which aims to establish a common standard for physical access management across different sites, countries, and access control systems.
  • Nedap introduced “Nedap Way”, a new reader line designed for secure building access. The new portfolio supports both card-based and mobile access and is compatible with a range of new and existing access control systems, enabling organizations to modernize their physical security infrastructure step by step.

Strategic Outlook and Future Investments

Looking ahead, Nedap expects revenue growth in the second half of 2026 compared with the second half of 2025. The company remains committed to its focus on sustainable long-term growth and plans to continue investing accordingly.

Key areas of future investment will place particular emphasis on:

  • Nedap's core technology platform
  • Artificial Intelligence (AI)
  • Cybersecurity

With a global workforce of over 1,100 employees, Nedap continues to leverage its long history of innovation. Founded in 1929 and listed on Euronext Amsterdam since 1947, the Groenlo-headquartered company remains well-positioned to navigate macroeconomic challenges while scaling its high-margin recurring revenue streams.