Technogym sales slow in 9m26. Wall St still sees 16% upside in the fitness stock.

Technogym fitness equipment is found in five-star hotels, Olympic training facilities, and private homes. The Italian company crossed EUR1 billion in annual revenue for the first time in 2025, but top-line growth more than halved in the first nine months of this year. The stock now trades around 30% below its May high, and most analysts are still bullish on it. Oninvest looks at how Technogym became a luxury brand, where its revenue comes from, and what could bring growth back into double digits.

In the early 1980s, the gym where Technogym founder Nerio Alessandri worked out catered mostly to bodybuilders and was equipped with benches, dumbbells, and barbells. In 1983, at age 22, Alessandri built a machine in his family’s garage that made squats easier and safer, then sold it to the local gym. Three years later, Technogym introduced Unica, a compact home gym that could take the place of several machines.

Technogym now offers several equipment lines for different workouts and spaces. In 2006, Italian architect and designer Antonio Citterio designed the wall-mounted Kinesis Personal exercise machine for Technogym. He hid the mechanism behind mirrored panels so the machine would blend in with the rest of the room. It was the first model in Technogym’s Personal Line. Buyers in the UAE put the Kinesis on display in their living rooms, much as they would a sofa or a bookcase, Alessandri said. The gold-colored version was especially popular there. Technogym’s Austrian catalog lists a gold-colored Kinesis with brown leather trim for EUR18,360.

Technogym teamed up with Dior to launch a limited-edition home fitness collection. The company says it has won more than 60 design awards, including the Compasso d’Oro and Red Dot Design Awards.

Sales to businesses account for most of Technogym’s revenue. In the first nine months of 2026, commercial sales rose 7.1% year over year and accounted for EUR608.3 million, or 81% of group revenue. Sales to consumers ticked up 2.2% to EUR143.7 million.

Technogym’s clients include fitness chains Virgin Active and Life Time and hotel groups Four Seasons, Hilton, and Marriott. The company states that 46 of the 50 properties on The World’s 50 Best Hotels 2026 list use its equipment. For clients like these, Technogym designs gyms, supplies and services equipment, trains staff, and offers a digital platform for managing the guest experience. In 2025, new corporate wellness centers opened at companies including Morgan Stanley, Samsung, and Siemens. Technogym has also supplied equipment for 10 Olympic Games, including the 2026 Milan Cortina Games.

Technogym’s revenue rose 13.1% to EUR1.02 billion in 2025, while adjusted net profit climbed 33% to around EUR120 million. In the first nine months of 2026, revenue rose 6.1% to EUR752 million, following 14% growth a year earlier. Sales grew fastest in Europe outside of Italy, up 9.7%, and in Italy, up 7.0%. Asia-Pacific revenue fell 1.3%.

Technogym disclosed only sales for the nine-month period. In the first half, adjusted EBITDA rose 1.1% to EUR85.7 million, while the adjusted EBITDA margin fell to 17.4% from 18.5%. Technogym attributed the margin decline to higher freight, raw material, and component costs. The company also stated in its report that it raised prices in July.

Free cash flow excluding one-off investments fell to EUR20 million from EUR44.2 million. Technogym attributed the decline to a buildup of finished goods and components to meet second-half sales and production needs.

In its half-year report, the management estimated total investment of around EUR80 million for 2026. In its nine-month update, Technogym described that spending as a record. To offer a fuller range of health services, the company is integrating AI into its equipment and services, expanding production capacity in Slovakia, and building a research facility called Healthness Lab. The investments support Technogym’s push into personalized training and preventive health. One product in that area is Technogym Checkup, an AI-powered station that assesses users’ fitness and helps tailor a workout program.

After Technogym reported nine-month sales, Equita SIM cut its target price to EUR18 per share from EUR22 per share, and Intesa Sanpaolo lowered its TP to EUR17 per share from EUR18 per share. Both kept their “buy” ratings. The new TPs imply 18% and 12% upside, respectively, from Thursday’s close.

Ahead of the sales update, BofA Securities analyst Thierry Cota cut his TP to EUR14 per share from EUR16 per share on October 22 and kept his “neutral” rating. Cota considered the valuation multiples of comparable companies, such as fitness equipment maker Johnson Health Tech and luxury names LVMH and Hermès, according to a report seen by Oninvest.

Cota expects sales growth to return to a low double-digit rate in the fourth quarter. He pointed to two potential drivers, the July price increase and orders for equipment from the Sand Stone collection that Technogym was still filling in October. He cut his 2027 revenue growth forecast to 7.8% from 9.0%, citing weak consumer demand for luxury goods and a weaker outlook for the Middle East. The analyst also scaled back his expectations for a recovery in the adjusted EBITDA margin in 2027, seeing the margin rising back to its 2025 level in 2028 at the earliest.

The next major event for investors is Technogym’s full-year results, due in March 2027. Seven analysts covering Technogym have “buy” calls on the stock and three have “hold” ratings, according to MarketScreener data. The average target price of EUR17.64 per share is 16% above Thursday’s close. Meanwhile, the highest target, EUR24.50 per share, implies more than 60% upside.