Endava (DAVA) Company Report

Endava has experienced choppy performance over the last two to three years due to macro challenges, the impact of AI causing a pause in client spending, and the integration of its largest acquisition, GalaxE.
The demand backdrop for large deals (over GBP 10 million total contract value) is firming with guarded optimism, with increased client activity and urgency for technology investments, particularly in financial services.
The company's fiscal 2026 guidance is built with a higher level of skepticism for pipeline conversion, with 79-81% of the low-end forecast already contracted and committed.
Endava is developing "Endava Flow," an AI-driven delivery methodology, to enable 200-400% productivity gains and facilitate a shift to outcome-based large deals, which is expected to be margin enhancing and impact profitability in fiscal 2027 and 2028.
The company anticipates gross margin improvement to 30% by Q4 2026, with a long-term target of 35% gross margin and 15% adjusted PBT margin, driven by Endava Flow and hardening demand.

4 days ago

Transcript

Endava's CFO Discusses Market Volatility, AI Impact, and Strategic Shift to Outcome-Based Deals

DAVA

Demand Weakening

New Projects/Investments

Guidance Update

Endava has experienced a choppy two to three years due to macro factors and the impact of AI causing a pause in client spending, alongside a 50% reduction in revenue from the payment space over the last two to three years.
Demand for larger deals is firming, with more predictable client engagement expected to benefit calendar year 2026.
The company is strategically shifting towards larger, outcome-based deals and rolling out Endava Flow, an AI-driven delivery methodology projected to be margin enhancing with significant profitability uplift in fiscal 2027 and 2028.
For fiscal year 2026, Endava's guidance reflects a higher level of skepticism for pipeline conversion, with 79-81% of the low-end forecast already contracted and committed. The company targets recovering gross margin to 35% and adjusted PBT margin to 15%.

4 days ago

Transcript

Endava Discusses Business Performance, AI Strategy, and Margin Outlook

DAVA

New Projects/Investments

Demand Weakening

Guidance Update

Endava has experienced a "choppy two, three years" due to macro challenges and a pause in IT spend, partly caused by corporate experimentation with AI.
The company believes the corporate AI experimentation phase is concluding, leading to a growing need for payback from AI investments.
Endava has developed "Endava Flow," an AI-native methodology designed to significantly increase delivery velocity (200%-400%) and expects it to be margin-enhancing in fiscal years 2027 and 2028.
Demand is "firming" for calendar year 2026, with a "hardening of demand," and the company has adjusted its guidance methodology to only include large deals (over GBP 10 million) once they are won.
The CFO anticipates a return to 35% gross margin and 15% adjusted PBT margin is achievable, with Endava Flow being a key driver for profitability improvement.

4 days ago

Transcript

Endava Discusses Q3 Results, Large Deal Wins, and AI Strategy

DAVA

Guidance Update

New Projects/Investments

Demand Weakening

Endava's Q3 results were slightly below expectations due to an unexpected credit issue with a significant client, which was a one-off event and impacted revenue and EPS.
The company secured three large deals, including a five-year, $100 million deal with Paysafe, an insurance client, and Toyota Racing Development, which are expected to add momentum to the second half of the revenue outlook.
Endava anticipates a flattish Q2 (excluding the credit issue), with revenue momentum and EPS picking up in the second half of the year, particularly in Q4.
Endava is strategically focusing on AI integration through its EndavaFlow methodology, aiming to drive efficiencies and transform core systems for clients, particularly in regulated financial services.

Nov 18, 2025, 8:20 PM

Transcript

Endava Discusses Q3 Performance, New Deals, and AI Strategy

DAVA

Demand Weakening

New Projects/Investments

Guidance Update

Endava's recent Q3 results were slightly below expectations due to an unexpected credit issue with a significant client, which impacted revenue and EPS, though this is considered a one-off event.
The company secured three large deals, including a five-year, $100 million deal with Paysafe, an insurance client, and Toyota Racing Development, which are expected to drive revenue momentum in the second half of the year.
Endava anticipates a flattish Q2 (excluding the credit issue) with momentum picking up in Q4, and relatively flat EPS for the next couple of quarters before increasing in Q4.
Endava is focused on long-term, multi-year partnerships and leveraging its Endava Flow methodology to help clients with AI-driven transformation, core modernization, and both cost efficiency and new business propositions.
The payments sector accounts for approximately 15% of Endava's revenue, where the company is actively involved in enabling shifts in payments, modernizing platforms, and addressing trends like data sovereignty.

Nov 18, 2025, 8:20 PM

Transcript

Endava Reports Q3 Results Below Expectations, Secures New Large Deals

DAVA

Guidance Update

New Projects/Investments

Demand Weakening

Endava's recent Q3 results came in slightly below expectations primarily due to an unexpected credit issue with a significant client, which impacted both revenue and EPS.
The company secured three large deals, including a five-year, $100 million deal with Paysafe, an insurance client, and Toyota Racing Development, which are expected to drive revenue momentum in the second half of the year.
Endava is focusing on AI-driven transformational partnerships with large clients, leveraging its proprietary Endava Flow methodology to bridge the gap between AI technology and business outcomes, and to modernize core systems.
The company anticipates a flattish Q2 (excluding the credit issue) with momentum picking up in the second half from these big deals, and expects relatively flat EPS for the next couple of quarters, with Q4 starting to improve.

Nov 18, 2025, 8:20 PM

Transcript

Endava plc Announces Q1 FY2026 Results and Provides Outlook

DAVA

Earnings

Guidance Update

Demand Weakening

Endava plc reported Q1 FY2026 revenue of £178.2 million, an 8.6% year-on-year decline, resulting in a diluted loss per share of £(0.15) and adjusted diluted EPS of £0.15.
The company's CEO, John Cotterell, stated that Q1 results were lower than guided due to an unexpected credit made to a client and non-large strategic pipeline opportunities that did not convert into revenue as anticipated.
For Q2 FY2026, Endava expects revenue to be in the range of £179.0 million to £182.0 million, with adjusted diluted EPS projected between £0.15 and £0.17.
The full fiscal year 2026 guidance anticipates revenue between £735.0 million and £752.0 million, and adjusted diluted EPS in the range of £0.80 to £0.88.
As of October 31, 2025, Endava had repurchased 7,139,149 American Depositary Shares for $115.9 million, with $34.1 million remaining under its share repurchase authorization.

Nov 12, 2025, 11:02 AM

6-K

Endava reports Q1 fiscal year 2026 results and updates full-year guidance

DAVA

Earnings

Guidance Update

Demand Weakening

Endava reported Q1 fiscal year 2026 revenue of GBP 178.2 million, an 8.6% decrease year-over-year, and adjusted diluted EPS of GBP 0.15. This performance was lower than guided, primarily due to an unexpected client credit and lower conversion of non-large strategic pipeline opportunities.
The company secured a multi-year strategic relationship with a leading payments company of up to $100 million and extended partnerships with Convex and Toyota Racing Development, which are expected to contribute to revenue uplift in the second half of FY2026.
Endava provided Q2 fiscal year 2026 guidance of revenue between GBP 179 million and GBP 182 million and adjusted diluted EPS between GBP 0.15 and GBP 0.17.
The full fiscal year 2026 revenue guidance was reassessed to a range of GBP 735 million to GBP 752 million, representing a constant currency decrease of 4.5% to 2.5% year-over-year, with adjusted diluted EPS expected between GBP 0.80 and GBP 0.88. This reflects a downgrade from previous expectations.
The company continues its share repurchase program, with $34.1 million remaining under authorization, and is investing in AI initiatives, which is impacting short-term margins but is expected to drive future profitability.

Nov 11, 2025, 1:00 PM

Transcript

Endava Reports Q1 FY2026 Results, Lowers Full-Year Guidance, and Secures New Strategic Deals

DAVA

Earnings

Guidance Update

Demand Weakening

Endava reported Q1 FY2026 revenue of GBP 178.2 million, an 8.6% decrease year-over-year, and an adjusted diluted EPS of GBP 0.15.
The company's Q1 results were lower than guided primarily due to an unexpected credit made to a client and the failure of certain non-large strategic pipeline opportunities to convert into revenue as anticipated.
For Q2 FY2026, Endava expects revenue to be in the range of GBP 179 million to GBP 182 million, representing a constant currency decrease of between 8% and 7% year-over-year, with adjusted diluted EPS projected between GBP 0.15 and GBP 0.17 per share.
The full fiscal year 2026 revenue guidance has been lowered to a range of GBP 735 million to GBP 752 million, with adjusted diluted EPS expected between GBP 0.80 and GBP 0.88 per share.
Despite the Q1 challenges, Endava secured a multi-year strategic relationship with a leading payments company valued at up to $100 million, with over 85%-90% being net new revenue.

Nov 11, 2025, 1:00 PM

Transcript

Endava Reports Q1 2026 Results and Lowers Full-Year Guidance

DAVA

Earnings

Guidance Update

New Projects/Investments

Endava reported Q1 FY2026 revenue of GBP 178.2 million, an 8.6% decrease year-over-year, and adjusted diluted EPS of GBP 0.15, with both metrics lower than guided due to an unexpected client credit and slower conversion of non-large strategic pipeline opportunities.
The company lowered its full FY2026 revenue guidance to GBP 735 million - GBP 752 million (from GBP 765 million previously) and provided adjusted diluted EPS guidance of GBP 0.80 - GBP 0.88 per share, reflecting a more prudent view on pipeline conversion.
Endava is undergoing a rapid transition to an AI-native business model, with over 70% of its services now AI-related, which is leading to short-term revenue erosion on traditional time and materials contracts but is expected to improve margins on outcome-based deals.
A new multi-year strategic relationship of up to $100 million was secured with a leading payments company, utilizing Endava's AI and advanced engineering capabilities.