Reply S.p.A. Maintains Stable Growth Amid AI Momentum

Reply S.p.A. has been re-evaluated by Quirin Privatbank Kapitalmarktgeschäft, with a continued "Buy" recommendation issued on May 20, 2026. Following the release of Q1 financial results on May 15, the company's revenue showed a stable increase of 6.2% year-on-year, amounting to EUR 645.0 million. This growth aligns with prior expectations and is attributed primarily to advancements in artificial intelligence, cloud services, data management, and cybersecurity.

The EBITDA margin experienced a slight improvement, rising from 17.3% to 17.4%, thanks to productivity enhancements driven by AI-focused initiatives and reduced reliance on external contractors. However, increased personnel costs and regional investments posed challenges to profitability.

Despite the absence of a 2026 forecast, management expressed confidence due to ongoing demand for AI and efficient customer-centric projects. While Reply's strong balance sheet and diversified portfolio bolster its investment case, uncertainties in automotive demand and selective customer spending remain potential obstacles.