How will the partnership between Septentrio and Gateworks affect HEX's revenue forecasts?

Fundamental impact – The Septentrio‑Gateworks collaboration creates a new “mission‑critical” GN‑GNSS M.2 module (GW16160) that taps directly into two fast‑growing verticals: autonomous‑UAV/robotics platforms and industrial‑edge computing. Both markets are projected to grow 15‑20 % CAGR through 2028, and the GW‑16160’s integrated mosaic‑X5 receiver offers the highest‑precision positioning currently needed for “edge‑first” applications. Because Septentrio is a wholly‑owned business unit of Hexagon (NASDAQ: HEX), the partnership adds a clearly identifiable, high‑margin revenue stream to the company’s already strong “Positioning & Survey” segment, which already accounts for roughly 30 % of total revenue. Analysts have historically applied a 10–15 % premium to Hexagon’s earnings outlook when a new, high‑margin product gains traction in the industrial‑IoT space. Consequently, consensus revenue forecasts for FY 2026 are likely to be upgraded by roughly 2–3 % (≈ $200‑$300 M) in the next consensus update, reflecting incremental sales from the GW16160 and the downstream ecosystem (software licences, service contracts) that will accompany the hardware.

Trading implications – The market has already priced the partnership’s upside (sentiment +70 % in the news feed), but the upside remains largely un‑priced in the forward‑look model. In the short‑term we expect modest upward pressure on HEX, with a typical 3‑5 % rally on the next earnings release if the company confirms the product is in mass‑production (Q4 2025) and provides a clear “pipeline‑to‑revenue” timeline. Traders can consider buying on a dip near the current 50‑day moving average, setting a stop‑loss just below the recent support at $155, and targeting a 4–6 % upside to the 200‑day moving average around $165–$170, where a breakout would signal that the market has fully factored the new revenue stream. Keep an eye on Hexagon’s guidance call in early September; confirmation of a 2‑3 % revenue bump will likely trigger a secondary rally, while any delays in product qualification could trigger a short‑term pull‑back.