Overview

• Tech transformation group's Q2 revenue declined yr/yr but beat analyst expectations

• Adjusted diluted EPS for Q2 fell compared to prior year

• Company investing heavily in AI initiatives to establish leadership

Outlook

• Endava expects Q3 FY2026 revenue between £182 mln and £185 mln

• Company expects FY2026 revenue between £736 mln and £750 mln

• Endava anticipates Q3 FY2026 adjusted EPS between £0.18 and £0.21

Result Drivers

• AI INVESTMENTS - Endava is investing heavily in AI to establish leadership, including recruitment and training of NextGen Talent

• CLIENT INTEREST - Strong initial client interest in Dava.Flow, Endava's AI-native engagement lifecycle

• PAYMENT PROJECT - Endava selected to design and build cloud-native cross-border payment switch for PayNet-NETS joint venture

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the it services & consulting peer group is "buy"

• Wall Street's median 12-month price target for Endava PLC is $9.00, about 72.1% above its February 18 closing price of $5.23

• The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nBwbHYXjda

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)