TeamViewer cuts 2026 revenue growth forecast to a range of -2% to -1%
Key Facts
TeamViewer cut its forecast for revenue growth in fiscal 2026 to a range of -2% to -1% in constant currencies, from 0% to 3%, in a revision announced with its third-quarter results on November 3. The company attributed the change to its expectation that delayed conversion of large enterprise deals and renewed economic uncertainty in Europe would weigh on fourth-quarter revenue growth. Quarterly revenue was 184.5 million euros, down 2.2% in constant currencies year over year, compared with 192.0 million euros in the third quarter of 2025. The decline in total revenue puts the forecast cut in the context of mixed operating performance across customer segments. Investing.com reported that the stock fell 19% on Tuesday after the forecast cut and third-quarter results.
Weakness was not evenly spread across the business: enterprise revenue rose 5.5% in constant currencies to 60.3 million euros in the third quarter. By contrast, small and medium-sized business revenue fell 5.4% to 124.2 million euros. The company said annual recurring revenue was 736.9 million euros at quarter-end, down 0.6% in constant currencies year over year. The divergence reflects growth in enterprise revenue alongside declines in small and medium-sized business revenue and annual recurring revenue. In explaining the pressures ahead, TeamViewer specifically cited delayed conversion of large enterprise deal volumes and renewed economic uncertainty in Europe, saying both would affect fourth-quarter revenue growth.
Chief Executive Oliver Steil said sales pipeline conversion "remains slow, and customer retention is below where it needs to be," adding that this reflects the need to expand the enterprise sales team and improve its performance globally. His assessment pointed to two operating factors cited by management: the pace of converting commercial opportunities and customer retention. By contrast, the company said new sales and upgrades in TeamViewer ONE and DEX grew sixfold year over year in the third quarter. Its highest-value enterprise customer segment, with annual recurring revenue exceeding 200,000 euros, also grew 13% in constant currencies year over year. These figures present a mixed picture within the enterprise business, with the product segment and highest-value customers growing despite delays in converting some large deals.
On profitability, adjusted EBITDA was 78.9 million euros in the third quarter, down 10% from 87.7 million euros in the same period of 2025. The adjusted margin fell to 42.8% from 45.7% a year earlier. The company nevertheless maintained its forecast for an adjusted EBITDA margin of about 43% in fiscal 2026. Revenue for the first nine months of the year was 550.4 million euros, down 1.3% in constant currencies year over year, while the adjusted margin was 43.7%. The results therefore combine declines in quarterly revenue and earnings with the company reaffirming its full-year margin forecast.
In the second quarter, the company had maintained its forecast for 2026 revenue growth of 0% to 3% in constant currencies, saying it was confident growth would accelerate in the second half of the year. In that quarter, enterprise revenue rose 2.8% in constant currencies to 58.6 million euros, and enterprise annual recurring revenue grew 8.3% to 235.5 million euros, while net enterprise revenue retention was 94%. The comparison with the third quarter shows enterprise revenue continuing to grow, but at a different pace from the previous quarter's figures, alongside a revision to the annual outlook after the new results were announced. For the previous year, TeamViewer said in February that 2025 revenue rose 5% in constant currencies to 767.5 million euros, and its initial forecast for 2026 was growth of 0% to 3%.
The company's outlook now extends to 2027: it said expanding the enterprise sales team in Europe, the Middle East and Africa, improving momentum in the United States and its new-business pipeline are expected to accelerate annual recurring revenue growth that year. This outlook follows the chief executive's acknowledgment that deal conversion and customer retention need improvement, and the company’s identification of an expected impact from delayed large enterprise deals in the fourth quarter of 2026. The company had listed its third-quarter results and analyst call on its calendar for November 3, 2026. During the session, Investing.com reported that the stock fell as much as 18% at the open and moved between 7.31 euros and 7.06 euros before settling near the previous session's close.