Stock Markets July 15, 2026 01:14 AM

Seco flags modest H1 sales rise, projects Q3 revenue of about €60 million

Edge computing and recurring Clea revenues support margin gains as company navigates higher memory costs

By Priya Menon
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Italian edge AI specialist Seco reported a slight year-on-year increase in preliminary first-half net sales and an improvement in gross margin to 54.0% from 53.4%. Growth was led by edge computing sales and recurring revenue from the Clea business, which generated €7.4 million in H1 with recurring revenue up 12% year-on-year. The company expects third-quarter 2026 revenues near €60 million, roughly 25% above the prior-year quarter.

Seco flags modest H1 sales rise, projects Q3 revenue of about €60 million
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Key Points

  • Preliminary first-half net sales were slightly higher year-over-year; gross margin improved to 54.0% from 53.4%.
  • Edge computing revenue growth and recurring revenues from Clea drove sales; Clea generated €7.4 million in H1 with recurring revenues up 12% year-over-year.
  • Seco forecasts Q3 2026 revenues of about €60 million, a projected 25% increase compared with the same quarter last year.

Seco, the Italian provider focused on edge artificial intelligence solutions, posted a marginal increase in preliminary net sales for the first half of the year compared with the same period a year earlier. The company also reported an improvement in its gross margin, which rose to 54.0% from 53.4% year-on-year.

Company executives attributed the sales uptick to stronger activity in edge computing and to growing recurring revenues tied to its Clea business. Clea produced €7.4 million of revenue during the first half, and the portion of that revenue coming from recurring sources climbed by 12% compared with the prior-year half.

Seco said the expansion in gross margin demonstrates resilience in the face of rising memory prices. Management noted that the company has offset cost pressure through a combination of supply-chain measures and selective price increases.


Outlook

Looking forward, Seco expects third-quarter 2026 revenues of approximately €60 million, a figure that would represent a 25% increase versus the comparable quarter last year. The company signaled an expectation of continued strong progression in its top-line revenue.


Context and implications

The reported performance highlights two revenue drivers for Seco: expanding edge computing sales and a growing stream of recurring revenue from the Clea product line. The combination has been sufficient to nudge overall net sales higher in the first half and to support a modest improvement in gross margin despite upward pressure on memory costs.

Seco's guidance for Q3 2026 indicates management expects momentum to continue into the next quarter, with the company targeting around €60 million in revenue, or about one-quarter higher than the year-ago period.

Risks

  • Rising memory prices have created cost pressure - the company has managed this via supply-chain actions and price increases, but ongoing memory-cost volatility could affect margins. (Impacted sectors: semiconductors, technology hardware)
  • Top-line momentum is based on continued growth in edge computing and recurring Clea revenues - any slowdown in those revenue streams could affect the company's revenue progression. (Impacted sectors: edge computing, enterprise AI)

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