Raised sales forecasts in the hydrogen sector, a potential technological breakthrough in silicon-based high-performance batteries, and a cybersecurity heavyweight that is coming under pressure despite strong figures due to a weak outlook – the markets in 2026 are reacting with increasing selectivity. While future-oriented technologies such as electrolysis and next-generation battery materials are gaining operational momentum and targeting billion-dollar markets, the AI-driven cybersecurity segment illustrates how sensitive investor sentiment remains to forward guidance.
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ITM Power – Stock with tailwind
“ITM continues to deliver strong revenue growth while further expanding its firmly contracted order backlog.” With these words, CEO Dennis Schulz underscores the operational momentum of the British electrolyser manufacturer. The project pipeline is well filled, and sales activities are at a solid level. And this is now also reflected in the figures.
For the 2025/26 financial year ending in April, the company is raising its revenue forecast to GBP 40 to 43 million. Previous guidance was GBP 35 to 40 million. On average, this corresponds to an increase of 11%. By comparison, revenue in the previous financial year was GBP 26.0 million.
Strong project progress and contributions from recently announced contracts are considered to be the drivers. In addition, the introduction of the percentage-of-completion method ensures greater transparency, as revenues are now recognized gradually over the term of the contract.
The targets for adjusted EBITDA and liquidity remain unchanged. Market participants and analysts alike viewed the fact that revenues are rising despite stable margins and cash forecasts as a clear positive signal.
Private bank Berenberg also remains optimistic and reiterates its “Buy” rating. The price target stands at GBP 100, implying upside potential of just under 50% from current levels.
NEO Battery Materials – On the verge of a breakthrough
Commercialization has begun. NEO Battery Materials (TSXV:NBM) is at a turning point in early 2026. Instead of visions, the company is now delivering marketable high-performance batteries from Western production. This is made possible by a factory in South Korea with megawatt capacity that is already operational and was taken over and converted without the need for expensive new construction.
Technologically, the Canadians are relying on proprietary silicon-reinforced anodes. The result is higher energy density, faster charging times, and cost advantages over classic lithium-ion cells. The newly developed NBM Drone Cells are particularly impressive. With identical dimensions, they deliver over 50% more capacity and 40% higher energy density than standard models, which is a massive advantage for drone manufacturers, who can achieve longer flight times without design changes.
The business model follows the foundry principle of the semiconductor industry. OEMs from the robotics, automotive, and defense industries specify the requirements, and NEO takes care of development and manufacturing. This saves customers high investments in their own production lines and provides them with specialized batteries without supply chain risks from China. According to estimates, the addressable market for silicon-enhanced lithium-ion batteries could grow to around USD 30 billion by 2032.
Operationally, the pipeline is growing dynamically. NEO has been added to the supplier list of an Asian Fortune 500 automotive manufacturer, supplies drone and robotics companies, and cooperates with the Korea Institute for Defense Industry. In addition, there is a strategic partnership with Korea Zinc and Taesung to develop lightweight composite copper foils for the next generation of batteries. An order backlog of around CAD 10 million underscores the company’s increasing visibility.
NEO is positioning itself in a technologically demanding niche with clear competitive advantages and is currently transforming itself from a developer to a producer. NEO Battery Materials’ market capitalization currently stands at around CAD 91 million. If commercialization continues as planned, the stock is poised for a revaluation.
Palo Alto – Strong figures, weak outlook
Once again, the stock market showed no mercy. Although the cybersecurity specialist exceeded expectations in the second fiscal quarter, the stock plummeted by over 8% to USD 149.80 in after-hours trading. The reason for this lies not in the past, but in the future.
With adjusted earnings per share of USD 1.03, Palo Alto clearly exceeded forecasts of USD 0.94. Revenue climbed 15% to USD 2.59 billion. Net income also rose significantly to USD 432 million, up from USD 267 million in the previous year.
However, the outlook for the third quarter was disappointing. Earnings per share of only USD 0.78 to USD 0.80 are expected, which is significantly below market expectations.
CEO Nikesh Arora has been pursuing an aggressive expansion strategy since 2018. More than 20 acquisitions, most recently billion-dollar deals such as CyberArk and Chronosphere, are intended to transform the group into an integrated security platform. With the planned purchase of Israeli AI security start-up Koi, Palo Alto is increasingly focusing on the protection of autonomous AI systems.
For the full year, management forecasts revenues of up to USD 11.31 billion with operating margins close to 29%. By 2028, the free cash flow margin is expected to rise to 40%. So Palo Alto is delivering operationally, but its ambitious AI expansion is costing a lot of confidence. The current environment is not conducive to this, given the slide of the hyperscalers following the announcement of billion-dollar investments in recent weeks.
Palo Alto came under pressure following a weaker-than-expected outlook. ITM Power, on the other hand, raised its revenue forecast. Meanwhile, NEO Battery Materials is advancing further into commercialization, which could pave the way for a potential re-rating.
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