Vestas Wind Systems (CPSE:VWS) opened 2026 with Q1 revenue of €3.97b and basic EPS of €0.08, setting the tone for how the year is starting after a busy 2025. Over recent quarters, the company has seen quarterly revenue move from €3.47b and EPS of roughly €0.00 in Q1 2025 to €6.27b and €0.44 in Q4 2025, with trailing twelve month EPS at €0.83 on €19.32b of revenue. This gives investors a clear read on how volumes and profitability are feeding through to the income line as net margins sit at 4.4%.
See our full analysis for Vestas Wind Systems.
With the latest numbers on the table, the next step is to see how this earnings profile lines up with the widely held narratives about Vestas, and where the figures start to challenge those stories.
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CPSE:VWS Earnings & Revenue History as at May 2026 TTM earnings of €855m put recent Q1 in context Over the last 12 months, Vestas earned €855 million on €19.32b of revenue, compared with Q1 2026 net income of €82 million on €3.97b, so the latest quarter is only a small slice of what is still a much larger trailing profit base. Consensus narrative points to revenue growth of about 8.3% a year with margins reaching 6.6% by 2029. The current 4.4% net margin versus 3.2% a year earlier lines up with that view but also raises the bar for future improvement.
Analysts expect earnings to move from €778 million to about €1.6b by 2029, while the reported 49.5% earnings growth over the past year already reflects a period of strong expansion that may not repeat at the same pace. With the stock at €193.65 and an analyst target of €186.12, the small gap suggests the market is already treating this margin recovery as broadly in line with that balanced narrative rather than a major surprise.
Consensus expectations look reasonable on these numbers, but they also leave less room for error if profitability stalls or costs pick up again.
P/E of 29.8x sits between peers and wider industry Vestas trades on a trailing P/E of 29.8x, which is below the peer average of 81x yet slightly above the European Electrical industry average of 27.6x, so the market is pricing it at a premium to the sector but at a large discount to closer comparables. Bulls argue that strong historical earnings growth of 49.5% over the past year and 25.6% a year over five years justifies that premium and could still support the current multiple if growth stays healthy.
Forecast earnings growth of about 17.6% a year and revenue growth of 6.9% a year are key pillars of the bullish case, because they suggest Vestas could keep compounding from the €855 million TTM profit base. At the same time, the 4.4% net margin shows progress but leaves room before hitting the higher margin levels bullish analysts speak about, so any slowdown from those growth forecasts would quickly make a near 30x P/E look less comfortable.
Bulls see this P/E level as a middle ground between peers and the broader industry, but the numbers show that future growth will need to be close to expectations to keep that stance intact.
For a deeper look at how supporters think the growth story could play out from here, including margin targets and long term earnings paths, it is worth reviewing the bullish case in full 🐂 Vestas Wind Systems Bull Case
DCF fair value of 188.54 contrasts with current price A DCF fair value of €188.54 sits slightly below the current share price of €193.65, while the analyst price target of €186.12 is close to the same ballpark, giving two different methods that both place the stock modestly under the market level. Bears focus on this small premium to DCF fair value and the slightly higher P/E than the wider industry as signs that valuation could be pressured if cost risks and competition weigh on the 4.4% margin.
The cautious narrative highlights rising tariffs, offshore ramp up costs and pricing pressure from lower cost rivals. If these factors prevent margins from moving much beyond the current 4.4%, the gap between price, DCF fair value and the €186.12 target could become harder to defend. On the other hand, past earnings growth of 49.5% and TTM EPS of €0.83 show that the business has already scaled its profitability, so bears need those cost and competition concerns to persist for several years to fully support a much lower valuation.
Cautious investors tend to lean on this DCF and target price cluster as a reminder to watch how future margins and earnings growth compare with the risk factors highlighted in recent commentary before assuming much upside from here 🐻 Vestas Wind Systems Bear Case
Next Steps
To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Vestas Wind Systems on Simply Wall St. Add the company to your watchlist or portfolio so you’ll be alerted when the story evolves.
If the mix of bullish and cautious views here feels balanced but unresolved, take a closer look at the data now and shape your own view by checking the 2 key rewards
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Vestas is carrying a near 30x P/E with only a 4.4% net margin and a share price that sits slightly above both DCF fair value and analyst targets.
If you are uneasy about paying up where margins and valuation already look tight, use the 223 high quality undervalued stocks to quickly spot stocks where pricing and quality appear better aligned.
This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.
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