Carl Zeiss Meditec Flags Major Restructure as First-Half Earnings Slide

The optics giant has unveiled a sweeping cost-cutting program affecting up to 1,000 jobs globally after reporting a sharp drop in revenue and profitability for the first six months of its 2025/26 fiscal year.

Carl Zeiss Meditec has reported a difficult first half, with revenue falling to €991.0 million, down 5.7% on the prior corresponding period, as the German medtech heavyweight grapples with currency headwinds, a weaker IOL business, and softening demand across key markets including Asia-Pacific.

Adjusted EBITA dropped to €60.5 million from €112.6 million a year earlier, with the adjusted EBITA margin nearly halving to 6.1% from 10.7%. Earnings per share fell to €0.17, compared with €0.70 in the same period last year.

IOL recall and tender exclusions hit ophthalmology hard

The company's Ophthalmology Strategic Business Unit, the division most relevant to eyecare professionals, bore the brunt of the decline, with revenue falling 6.7% to €753.8 million. On a currency-adjusted basis, the drop was still a meaningful 4.2%.

A significant contributor to the shortfall was the exclusion of bifocal intraocular lenses from government tenders, a development Zeiss Meditec had flagged in its first-quarter update. That exclusion triggered a product recall from the distribution channel, compounding the revenue hit. Device shipments, particularly for diagnostic equipment, also came in below plan.

For Australian optometrists and ophthalmologists who rely on Zeiss diagnostic and surgical platforms, the news raises questions about near-term product availability and support, though the company has not indicated any specific impact to the ANZ market.

Asia-Pacific among the weakest regions

The APAC region recorded a 10.0% revenue decline to €397.9 million, the steepest regional fall reported, with the drop sitting at 8.6% even after stripping out currency effects. Zeiss attributed the result to lower revenue across China, Japan, South Korea and Southeast Asia, partially offset by continued positive momentum in India.

By contrast, EMEA was the standout performer, growing 4.8% to €345.9 million, with most core European markets delivering growth.

Up to 1,000 roles to go as €200m savings program kicks off

In response to the challenging conditions, Zeiss Meditec's management board has announced a sweeping transformation program targeting earnings improvements of more than €200 million per annum by fiscal year 2028/29 relative to the current year.

The measures include procurement and supply chain optimisation, culling of less profitable products, a sharper R&D focus with activities shifted to lower-cost geographies, and reductions in administrative headcount. Up to 1,000 positions globally may be cut over the next three years.

After accounting for approximately €40 million per annum in rising infrastructure costs, including a new ERP and CRM system rollout and lease commitments at its Jena headquarters, the company expects net savings of more than €160 million annually.

One-off costs associated with the restructure are expected to total up to €150 million through to fiscal year 2028/29.

CEO Andreas Pecher acknowledged the difficulty of the decisions ahead. "These decisions are painful, yet unavoidable in order to ensure that we remain competitive and successful over the long term," he said, framing the restructure as the foundation for future investment in innovation.

Outlook: stability targeted by 2028/29

For the full 2025/26 fiscal year, Zeiss Meditec is guiding for revenue of at least €2.15–2.20 billion, roughly 1% to 3.5% below last year, with the adjusted EBITA margin expected to land between 8% and 10%, excluding special items.

Looking further ahead, the company is targeting mid-single-digit currency-adjusted revenue growth annually and an adjusted EBITA margin recovery to at least approximately 15% by 2028/29, with a long-term ambition to return to its previous target range of 16–20%.

For eyecare practices evaluating capital purchases or long-term supplier partnerships, the restructure and the portfolio rationalisation it entails may be worth monitoring closely in the months ahead.