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Dec 31, 2025
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Endava Q2 2026 Earnings Report
Endava reported a decline in revenue and profit for the second quarter of fiscal year 2026, alongside a decrease in diluted EPS.
Key Takeaways
Endava experienced a challenging second quarter of fiscal year 2026, with revenue declining by 5.9% year-on-year to £184.1 million. The company reported a loss before tax of £(7.2) million and a diluted loss per share of £(0.13). Despite the declines, Endava highlighted investments in AI and strategic partnerships as key initiatives for future growth.
Revenue for Q2 FY2026 was £184.1 million, a 5.9% decline compared to the prior year, and a 5.1% decline at constant currency.
The company reported a loss before tax of £(7.2) million, a significant decrease from a profit of £2.5 million in the prior year.
Diluted EPS was £(0.13), compared to £0.11 in the prior year, while adjusted diluted EPS was £0.16, down from £0.30.
Cash and cash equivalents increased to £68.5 million at December 31, 2025, from £59.3 million at June 30, 2025.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Endava provided guidance for the third quarter and full fiscal year 2026, anticipating continued revenue decline at constant currency but expecting an increase in adjusted diluted EPS.
Positive Outlook
- Expected adjusted diluted EPS for Q3 FY2026 to be in the range of £0.18 to £0.21 per share, an increase from the current quarter.
- Expected adjusted diluted EPS for Full FY2026 to be in the range of £0.80 to £0.86 per share.
- The company is investing heavily in AI to establish itself as an AI leader.
- Strong initial interest from clients in Dava.Flow, their AI-native engagement lifecycle.
- Continued expansion of strategic partners and broadened existing relationships.
Challenges Ahead
- Expected revenue for Q3 FY2026 to be in the range of £182.0 million to £185.0 million, representing a constant currency revenue decline of between (4.0)% and (2.5)% year-over-year.
- Expected revenue for Full FY2026 to be in the range of £736.0 million to £750.0 million, representing a constant currency revenue decline of between (3.5)% and (1.5)% year-over-year.
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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