Endava PLC Sponsored ADR (DAVA) came out with quarterly earnings of $0.21 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.38 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +0.96%. A quarter ago, it was expected that this company would post earnings of $0.25 per share when it actually produced earnings of $0.2, delivering a surprise of -20%.Over the last four quarters, the company has sur ...

Financial Data and Key Metrics Changes - Revenue totaled GBP 184.1 million, representing a 5.9% decrease year-on-year and a 3.3% increase from Q1 FY2026 [7][21] - Loss before tax for the quarter was GBP 7.2 million, compared to a profit of GBP 2.5 million in the same period last year [21] - Adjusted PBT was GBP 10.7 million, down from GBP 21.8 million year-on-year, with an adjusted PBT margin of 5.8% compared to 11.2% [22] - Adjusted diluted earnings per share were 16 pence, down from 30 pence year-on-year [23] Business Line Data and Key Metrics Changes - Revenue from the 10 largest clients accounted for 35% of total revenue, down from 36% year-on-year, with average spend per client decreasing from GBP 7.1 million to GBP 6.5 million [23] - North America accounted for 40% of revenue, Europe for 23%, the UK for 31%, and the rest of the world for 6% [24] - Revenue from North America decreased by 5.1%, Europe by 8.5%, and the UK by 9.1%, while the rest of the world increased by 21.8% [24][25] Market Data and Key Metrics Changes - The company experienced a 3.3% FX headwind impacting revenue, particularly in North America [33] - The rest of the world showed strong growth, driven mainly by the payments and TNT verticals [25] Company Strategy and Development Direction - The company is heavily investing in AI to establish itself as a leader in the AI space, focusing on recruitment, training, and evolving engagement strategies [5][6] - Strategic partnerships with OpenAI and other hyperscalers are being leveraged to enhance service offerings and drive demand [11][12][14] - The launch of Endava Rise aims to convert startup innovations into enterprise-ready solutions, enhancing the company's capabilities [15] Management's Comments on Operating Environment and Future Outlook - Management noted that the ongoing investment in AI-native delivery models is impacting margins but is essential for long-term growth [22][28] - The company expects revenue guidance for Q3 FY2026 to be in the range of GBP 182 million to GBP 185 million, indicating a constant currency revenue decrease of 4% to 2.5% year-on-year [29] - The outlook for Q4 is more optimistic, with expected sequential growth driven by secured deals and increased working days [34] Other Important Information - The company ended the quarter with 11,385 employees, a 2.4% decrease from the previous year [19] - Cash and cash equivalents totaled GBP 68.5 million, an increase from GBP 59.3 million at the end of June 2025 [25] - Borrowings increased to GBP 202.7 million, supporting the share repurchase program [26] Q&A Session Summary Question: Fiscal year guidance and growth drivers for Q4 - Management indicated that Q4 growth is supported by secured deals and increased working days, with underlying growth expected to be around 6% [34] Question: Details on extensions with largest payment clients - Extensions primarily involve work in switch/gateway areas, focusing on cost rationalization and enhancing customer value propositions [38] Question: Margin impact from increased investments - Investments in partnerships and AI initiatives are heavier than expected, impacting margins, with FX also contributing to margin pressures [41][43] Question: OpenAI adoption trends and displacement concerns - The relationship with OpenAI is strong, with successful enterprise adoption of ChatGPT, and management sees opportunities outweighing displacement fears in the enterprise market [44][46][49] Question: Top client spending and pipeline assumptions - Stability is expected among top clients, with a slight slowdown in healthcare but overall sequential growth anticipated [56]

Endava (NYSE:DAVA) Q2 2026 Earnings call February 19, 2026 08:00 AM ET Company ParticipantsAntonio Jaramillo - VP of Equity ResearchBryan Bergin - Managing DirectorJohn Cotterell - CEOJonathan Lee - Managing Director of Equity ResearchLaurence Madsen - Head of Investor Relations and ESGMark Thurston - CFOPuneet Jain - Equity Research AssociateOperatorGood day, and welcome to the Endava second quarter 2026 results. All participants will be in listen-only mode. Should you need assistance, please signal a conf ...

Financial Data and Key Metrics Changes - Revenue totaled GBP 184.1 million, representing a 5.9% decrease year-on-year and a 3.3% increase from Q1 FY2026 [6][21] - Loss before tax for the quarter was GBP 7.2 million, compared to a profit of GBP 2.5 million in the same period last year [21] - Adjusted PBT was GBP 10.7 million, down from GBP 21.8 million year-on-year, with an adjusted PBT margin of 5.8% compared to 11.2% [22] - Adjusted diluted earnings per share were 16 pence, down from 30 pence year-on-year [23] - Adjusted free cash flow was GBP 20.1 million, down from GBP 31.6 million in the same period last year [25] Business Line Data and Key Metrics Changes - Revenue from the 10 largest clients accounted for 35% of total revenue, down from 36% year-on-year, with average spend per client decreasing from GBP 7.1 million to GBP 6.5 million [23] - North America accounted for 40% of revenue, Europe for 23%, and the UK for 31%, with North America revenue decreasing by 5.1% year-on-year [24] - Revenue from Europe declined 8.5%, primarily due to weakness in payments and mobility [24] - The rest of the world saw a revenue increase of 21.8%, driven mainly by the payments and TNT verticals [25] Market Data and Key Metrics Changes - The company experienced a 5.1% revenue decrease in constant currency terms year-on-year [21] - The UK revenue decreased by 9.1%, mainly due to the reclassification of a large payments client to North America [25] - The rest of the world increased significantly, indicating growth opportunities in emerging markets [25] Company Strategy and Development Direction - The company is heavily investing in AI to establish itself as a leader in AI-native solutions, focusing on recruitment, training, and building partnerships [5][6] - Strategic partnerships with OpenAI and other hyperscalers are being leveraged to enhance service offerings and drive demand [12][14] - The launch of Endava Rise aims to convert startup innovations into enterprise-ready solutions, enhancing the company's capabilities [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing challenges posed by currency fluctuations and competitive pressures but remains optimistic about the long-term growth potential driven by AI adoption [27][28] - The company expects revenue guidance for Q3 FY2026 to be in the range of GBP 182 million to GBP 185 million, indicating a constant currency revenue decrease of 4% to 2.5% year-on-year [28] - For the full fiscal year 2026, revenue is expected to be between GBP 736 million and GBP 750 million, reflecting a constant currency decrease of 3.5% to 1.5% [28] Other Important Information - The company ended the quarter with 11,385 employees, a 2.4% decrease from the same period last year [19] - Capital expenditure for the quarter was 4.4% of revenue, significantly higher than 0.2% in the same period last year, due to investments in a payments accelerator [26] Q&A Session Summary Question: Fiscal year guidance and growth drivers for Q4 - Management indicated that Q4 growth is expected due to secured deals and an increase in working days compared to Q3 [31][33] Question: Details on commitments with largest payment clients - Management confirmed extensions of work with two largest payment clients, focusing on switch/gateway type projects [36] Question: Margin impact from increased investments - Management acknowledged that investments in partnerships and AI-native delivery models are heavier than expected, impacting margins [40][41] Question: OpenAI adoption trends and market displacement concerns - Management expressed confidence in the strong relationship with OpenAI and the enterprise market opportunities, addressing concerns about service displacement [43][45] Question: Top client spending and pipeline assumptions - Management noted stability in top clients, with expectations for sequential growth and a strong pipeline for Q3 and Q4 [53][58]

Q2 FY26 Investor presentation . Disclaimer. This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this presentation, other than statements of historical facts, are forward-looking statements. The words "believe," "estimate," "expect," "may," "will" and similar expressions are intended to identify forward- looking statements. Such forward-looking statements include, but are not limited to, the statements r ...

Core Viewpoint - Endava plc has announced its financial results for Q2 FY2026, highlighting its strategic pivot towards AI and significant investments in this area to establish itself as a leader in AI-driven business transformation [1] Financial Performance - The results cover the three months ended December 31, 2025, indicating a focus on financial metrics during this period [1] Strategic Initiatives - The company has been heavily investing in recruitment and training to enhance its capabilities in AI, which is a key component of its business transformation strategy [1]

Core Insights - Endava has announced a significant expansion of its partnership with Cognition [1] Company Summary - Endava is identified as a business transformation group [1] - The partnership expansion indicates a strategic move to enhance capabilities and offerings [1]

Core Insights - Endava has partnered with Miro to enhance its AI-native delivery model by integrating Miro's AI platform across its global operations [1] - The partnership aims to operationalize AI throughout the delivery lifecycle, improving decision-making and team alignment [1] - Endava's employee base of nearly 12,000 will benefit from this collaboration, which is expected to accelerate digital transformation for clients [1] Company Overview - Endava is a technology-driven business transformation group focused on enabling clients to accelerate growth and tackle complex challenges through an AI-native approach [1] - Miro serves over 100 million users and 250,000 customers, providing a collaborative AI workspace that enhances team productivity and innovation [1] Partnership Details - The integration of Miro into Endava's Dava.Flow™ is designed to compress decision cycles and improve stakeholder alignment [1] - Early internal adoption of Miro has shown measurable improvements in workshop outcomes and reduced process times from weeks to days [1] - The partnership will also support joint go-to-market initiatives, enhancing both companies' capabilities in transforming delivery models for large organizations [1] Strategic Goals - Endava aims to lead the industry with an AI-native, methodology-led approach to delivery, embedding AI into everyday operations [1] - Miro emphasizes the importance of viewing AI as a means to create new company-wide capabilities rather than just a technology [1] - The collaboration is expected to facilitate faster transformation programs that yield measurable business impacts for clients [1]

Core Viewpoint - Endava plc, a technology-driven business transformation group, is set to release its second-quarter results for the period ending December 31, 2025, on February 19, 2026, before U.S. market hours [1] Group 1 - The company utilizes an AI-native approach that integrates advanced technology with extensive industry expertise [1] - Following the results announcement, a conference call will be held featuring discussions by CEO John Cotterell and CFO Mark Thurston [1]

Core Insights - Endava Plc (NYSE: DAVA) is positioned as a recovery setup following a cyclical reset year, with the stock previously down 45% in the preceding year [1] Company Analysis - The company has a focus on technology, infrastructure, and internet services, emphasizing strong fundamentals paired with real potential [1] - The analyst has a background in petroleum and gas engineering but transitioned to finance, indicating a diverse skill set that may benefit the analysis of Endava [1] Market Context - The article suggests that the market is reacting to the cyclical nature of the industry, which may present investment opportunities as the company recovers [1]