Endava Introduces Dava.Rise to Boost Innovation in Enterprises
Launch of Dava.Rise: Endava has introduced Dava.Rise, a program aimed at connecting high-potential scale-ups with global enterprises to foster innovation and address enterprise challenges through collaboration.
Support for Scale-ups: The program offers participating scale-ups mentorship, industry workshops, and go-to-market support to enhance their product-market fit and accelerate their commercial pathways.
Benefits for Enterprises: Dava.Rise provides enterprises with access to innovative technologies and a pipeline of scale-ups, facilitating collaboration between investors, ventures, and industry leaders.
Future Expansion Plans: Initially launched in London, Dava.Rise will focus on UK-based scale-ups and plans to expand globally and into specific industries by 2026, including finance, healthcare, and media.
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- Revenue Decline: Endava PLC reported revenue of GBP 184.1 million for the quarter, reflecting a 5.9% year-over-year decrease, indicating a decline in financial performance, particularly against the backdrop of ongoing investments in AI and next-gen talent that may impact future profitability.
- Loss Before Tax: The company recorded a loss before tax of GBP 7.2 million compared to a profit of GBP 2.5 million in the prior year, highlighting significant impacts on profitability amid increasing market competition and foreign exchange pressures.
- Decreased Client Spending: Revenue from the top 10 clients accounted for 35% of total revenue, down 1 percentage point from last year, with an average spend of GBP 6.5 million per client, a 7.9% year-over-year decline, suggesting weakened client demand that could affect the company's long-term growth potential.
- Cautious Future Outlook: The company provided revenue guidance for Q3 FY26 of GBP 182 million to GBP 185 million, anticipating a constant currency decrease of 4% to 2.5% year-over-year, while adjusted diluted EPS guidance is set at 18p to 21p, reflecting uncertainty in the market environment.
- Declining Financial Performance: Endava reported a Q2 FY2026 non-GAAP EPS of £0.16 and revenue of £184.1 million, reflecting a 5.9% year-over-year decline, indicating pressure in market competition that could impact investor confidence moving forward.
- Reduced Cash Flow: The net cash from operating activities for Q2 was £28.2 million, down from £32.0 million in the same period last year, highlighting challenges in operational efficiency that may lead to increased liquidity risks.
- Client Base Changes: As of December 31, 2025, Endava had 135 clients generating over £1 million in revenue, a decrease from 141 clients a year earlier, indicating potential risks of client attrition that could affect future revenue stability.
- Cautious Future Outlook: Endava expects Q3 FY2026 revenue to range between £182.0 million and £185.0 million, representing a year-over-year decline of 4.0% to 2.5%, with adjusted EPS guidance of £0.18 to £0.21, reflecting a cautious stance on future market conditions.
- Earnings Announcement: Endava is set to release its Q2 earnings on February 19 before market open, with a consensus EPS estimate of $0.21, reflecting a 30% year-over-year decline, which may impact investor sentiment.
- Revenue Expectations: The anticipated revenue for Q2 is $243.66 million, representing a 24.6% year-over-year increase, indicating strong performance in revenue growth despite challenges in profitability.
- Historical Performance: Over the past two years, Endava has beaten EPS estimates 88% of the time and revenue estimates 88% of the time, suggesting a degree of stability and reliability in its financial performance.
- Estimate Revisions: In the last three months, there have been no upward revisions for EPS estimates and one downward revision, while revenue estimates also saw no upward revisions and one downward revision, reflecting analysts' cautious outlook on the company's future performance.
- Partnership Expansion: Endava has significantly expanded its partnership with Cognition to enhance enterprise-grade AI-native engineering delivery capabilities by integrating Cognition's Windsurf and Devin platforms, thereby accelerating business outcomes and improving client experiences.
- Technology Integration: By embedding Cognition's tools within Dava.Flow™, Endava can support clients from experimentation to fully operational delivery, ensuring governance, quality, and traceability in complex projects, which enhances delivery consistency.
- Productivity Gains: Early adoption of Windsurf in client projects has demonstrated significant reductions in task cycle times, meaningful time savings on repetitive engineering work, and improvements in testing discipline, indicating that governed agentic delivery patterns can be responsibly scaled across client programs.
- Market Strategy: The expanded partnership also supports joint go-to-market initiatives, strengthening both companies' capabilities to help large organizations transform their delivery models and accelerate digital transformation, further solidifying their leadership in the industry.
- Partnership Expansion: Endava has announced an expansion of its partnership with Cognition to enhance enterprise-grade AI-native engineering capabilities by integrating Cognition's Windsurf and Devin platforms, thereby accelerating business outcomes and improving client experiences.
- Delivery Framework Optimization: By incorporating Cognition's tools into the Dava.Flow™ delivery framework, Endava can support clients from experimentation to fully operational delivery, ensuring governance, quality, and traceability in complex projects.
- Efficiency Gains: Early adoption of Windsurf in client-facing projects has demonstrated significant reductions in task cycle times, meaningful time savings on repetitive engineering work, and improvements in testing discipline, bolstering confidence in scaling governed delivery patterns across client programs.
- Joint Go-to-Market Initiatives: The expansion also supports joint go-to-market initiatives, enhancing both companies' ability to help large organizations transform their delivery models and accelerate digital transformation across various business environments.
- Technical Operator Appointment: Nexus Global Payments (NGP) has appointed the joint venture of PayNet and NETS as the Nexus Technical Operator, marking a significant milestone in building interoperable global payment infrastructure, which is expected to enhance the efficiency and security of cross-border payments.
- Global Partner Support: The newly appointed Technical Operator will collaborate closely with global cloud technology leader Amazon Web Services (AWS) and Endava, leveraging their expertise in cloud computing and AI to ensure that the technical design and development of the Nexus platform meets international standards.
- Infrastructure Development Responsibility: The NTO will be responsible for building, operating, and maintaining the Nexus infrastructure, ensuring compliance with global standards and delivering robust cybersecurity and operational resilience, thereby providing seamless connectivity for entities managing domestic instant payment schemes.
- Future Deployment Plans: Technical development for Nexus is scheduled to begin in early 2026, with a go-live target set for 2027, reflecting NGP's unwavering commitment to delivering a sustainable, scalable, and globally interoperable solution aimed at redefining speed and transparency in international transactions.








