Endava PLC Reports Revenue Decline Amid AI Transition
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 44 minutes ago
0mins
Source: Yahoo Finance
- Revenue Decline: For the quarter ended March 31, 2026, Endava PLC reported revenue of GBP 178.5 million, an 8.4% decrease year-over-year, reflecting challenges in uneven demand across sectors and leading to lowered revenue guidance.
- Pre-Tax Loss: The company reported a pre-tax loss of GBP 372 million, including a non-cash goodwill impairment of GBP 364.6 million, which significantly impacted financial results and highlighted pressures on profitability.
- AI-Driven Business Growth: Despite challenges, Endava's AI-driven business now accounts for 15% of total revenue, up from 5% a year ago, indicating progress in its transformation strategy that may drive future revenue growth.
- Increased Capital Expenditure: As of March 31, 2026, capital expenditure represented 1.6% of revenue, up from 0.6% in the prior year, demonstrating the company's intent to invest in technology and infrastructure to support future business development.
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Analyst Views on DAVA
Wall Street analysts forecast DAVA stock price to rise
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Moderate Buy
Current: 4.000
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10.00
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Current: 4.000
Low
8.00
Averages
10.00
High
15.00
About DAVA
Endava plc is a technology service provider. The Company provides a combination of engineering, industry expertise and a customer-centric mindset, to consult and partner with its customers to create technological solutions that transform businesses into the artificial intelligence (AI)-driven digital shift. The Company provides solutions to its customers from ideation to production at every stage of their digital transformation, regardless of industry, region or scale. It uses its proprietary enterprise agile delivery framework, known as The Endava Adaptive Model, or TEAM, with its three component structure comprising an Engagement Model to guide the interaction with its clients; an Interaction Model, called TEAM Enterprise Agile Scaling, or TEAS, which defines how it implements agile delivery at all levels of scaling, and Engineering Practices that guide its people to deliver effective and technical solutions for its clients.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Endava PLC Reports Revenue Decline Amid AI Transition
- Revenue Decline: For the quarter ended March 31, 2026, Endava PLC reported revenue of GBP 178.5 million, an 8.4% decrease year-over-year, reflecting challenges in uneven demand across sectors and leading to lowered revenue guidance.
- Pre-Tax Loss: The company reported a pre-tax loss of GBP 372 million, including a non-cash goodwill impairment of GBP 364.6 million, which significantly impacted financial results and highlighted pressures on profitability.
- AI-Driven Business Growth: Despite challenges, Endava's AI-driven business now accounts for 15% of total revenue, up from 5% a year ago, indicating progress in its transformation strategy that may drive future revenue growth.
- Increased Capital Expenditure: As of March 31, 2026, capital expenditure represented 1.6% of revenue, up from 0.6% in the prior year, demonstrating the company's intent to invest in technology and infrastructure to support future business development.
See More
Endava (DAVA) Q3 2026 Earnings Transcript
See More
Endava Reports Q3 FY2026 Earnings with Revenue Decline
- Financial Performance Decline: Endava reported a Q3 FY2026 non-GAAP EPS of £0.05 and revenue of £178.5 million, reflecting an 8.4% year-over-year decline, indicating pressure on the company's market competitiveness and profitability challenges.
- Employee Count Changes: As of March 31, 2026, Endava's total headcount was 11,225, with an average of 10,166 operational employees in Q3 FY2026, down from 10,272 in the same period last year, highlighting the company's efforts in cost control amidst declining revenues.
- Stable Client Base: Endava had 129 clients generating over £1 million in revenue as of March 31, 2026, down from 136 in 2025, indicating potential client attrition risks, especially as the top 10 clients accounted for 40% of total revenue.
- Cautious Revenue Outlook: The company expects future revenue to range between £181.0 million and £185.0 million, representing a year-over-year decline of 3.5% to 1%, reflecting uncertainties in the market environment and concerns over profitability.
See More
Endava Set to Announce Q3 Earnings on May 21
- Earnings Announcement: Endava (DAVA) is set to release its Q3 earnings on May 21 before market open, with consensus EPS estimate at $0.27, reflecting a 20.6% year-over-year decline, while revenue is expected at $248.58 million, indicating a 27.6% year-over-year growth potential.
- Historical Performance: Over the past two years, DAVA has surpassed EPS estimates 88% of the time and revenue estimates 100% of the time, showcasing a strong track record of financial performance and market confidence.
- Estimate Revision Trends: In the last three months, EPS estimates have seen 2 upward revisions and 5 downward revisions, while revenue estimates have experienced 2 upward and 2 downward revisions, indicating market uncertainty regarding the company's future performance.
- Market Focus: Despite facing margin pressures from its AI pivot and elusive growth, Endava's participation in the Morgan Stanley Technology, Media & Telecom Conference has attracted investor attention, potentially influencing its future market performance.
See More
Endava Partners with NatWest to Transform Merchant Payments
- Strategic Partnership Initiated: Endava has formed a strategic partnership with Tyl, NatWest's merchant payments arm, aimed at accelerating the evolution of its payment solutions by leveraging Endava's global operations and AI-native delivery model Dava.Flow™ to enhance customer payment acceptance experiences.
- Market Response Acceleration: This collaboration will significantly increase the speed at which new products and services are brought to market through the deployment of the Payments Gateway Accelerator, thereby enhancing flexibility, scalability, and performance across the payments lifecycle, helping Tyl maintain its competitive edge in a fierce market.
- Innovation-Driven Growth: Tyl's CEO James Hodgson noted that this partnership will accelerate innovation and unlock new revenue opportunities, ensuring competitiveness in a rapidly changing payments landscape, reflecting Endava's capability in delivering complex strategic engagements.
- Industry Integration and Modernization: With over 20 years of industry experience, Endava is committed to partnering with banks and payment providers to modernize platforms and simplify integrations to meet increasingly complex market demands, driving customer experience and business growth.
See More
Endava to Release Q3 2026 Results on May 21
- Earnings Release Schedule: Endava will announce its third-quarter results for the period ending March 31, 2026, on May 21, 2026, before the opening of U.S. markets, highlighting the company's latest advancements in technology-driven business transformation.
- Executive Conference Call: Following the earnings release, CEO John Cotterell and CFO Mark Thurston will hold a conference call at 8:00 AM ET to discuss the financial results, which is expected to provide deeper insights into the company's future strategies.
- Participant Dial-In Information: Participants can access the call by dialing 1-844-481-2736 (toll-free U.S.) or 1-412-317-0665 (international), using the conference ID for access, ensuring investors can smoothly join the discussion.
- Replay Availability: A replay of the call will be available on Endava's investor relations website after the meeting, allowing investors who could not attend live to access the information, thereby enhancing communication between the company and its investors.
See More
Endava PLC Reports Revenue Decline Amid AI Transition
- Revenue Decline: For the quarter ended March 31, 2026, Endava PLC reported revenue of GBP 178.5 million, an 8.4% decrease year-over-year, reflecting challenges in uneven demand across sectors and leading to lowered revenue guidance.
- Pre-Tax Loss: The company reported a pre-tax loss of GBP 372 million, including a non-cash goodwill impairment of GBP 364.6 million, which significantly impacted financial results and highlighted pressures on profitability.
- AI-Driven Business Growth: Despite challenges, Endava's AI-driven business now accounts for 15% of total revenue, up from 5% a year ago, indicating progress in its transformation strategy that may drive future revenue growth.
- Increased Capital Expenditure: As of March 31, 2026, capital expenditure represented 1.6% of revenue, up from 0.6% in the prior year, demonstrating the company's intent to invest in technology and infrastructure to support future business development.
See More
Endava (DAVA) Q3 2026 Earnings Transcript
See More
Endava Reports Q3 FY2026 Earnings with Revenue Decline
- Financial Performance Decline: Endava reported a Q3 FY2026 non-GAAP EPS of £0.05 and revenue of £178.5 million, reflecting an 8.4% year-over-year decline, indicating pressure on the company's market competitiveness and profitability challenges.
- Employee Count Changes: As of March 31, 2026, Endava's total headcount was 11,225, with an average of 10,166 operational employees in Q3 FY2026, down from 10,272 in the same period last year, highlighting the company's efforts in cost control amidst declining revenues.
- Stable Client Base: Endava had 129 clients generating over £1 million in revenue as of March 31, 2026, down from 136 in 2025, indicating potential client attrition risks, especially as the top 10 clients accounted for 40% of total revenue.
- Cautious Revenue Outlook: The company expects future revenue to range between £181.0 million and £185.0 million, representing a year-over-year decline of 3.5% to 1%, reflecting uncertainties in the market environment and concerns over profitability.
See More
Endava Set to Announce Q3 Earnings on May 21
- Earnings Announcement: Endava (DAVA) is set to release its Q3 earnings on May 21 before market open, with consensus EPS estimate at $0.27, reflecting a 20.6% year-over-year decline, while revenue is expected at $248.58 million, indicating a 27.6% year-over-year growth potential.
- Historical Performance: Over the past two years, DAVA has surpassed EPS estimates 88% of the time and revenue estimates 100% of the time, showcasing a strong track record of financial performance and market confidence.
- Estimate Revision Trends: In the last three months, EPS estimates have seen 2 upward revisions and 5 downward revisions, while revenue estimates have experienced 2 upward and 2 downward revisions, indicating market uncertainty regarding the company's future performance.
- Market Focus: Despite facing margin pressures from its AI pivot and elusive growth, Endava's participation in the Morgan Stanley Technology, Media & Telecom Conference has attracted investor attention, potentially influencing its future market performance.
See More
Endava Partners with NatWest to Transform Merchant Payments
- Strategic Partnership Initiated: Endava has formed a strategic partnership with Tyl, NatWest's merchant payments arm, aimed at accelerating the evolution of its payment solutions by leveraging Endava's global operations and AI-native delivery model Dava.Flow™ to enhance customer payment acceptance experiences.
- Market Response Acceleration: This collaboration will significantly increase the speed at which new products and services are brought to market through the deployment of the Payments Gateway Accelerator, thereby enhancing flexibility, scalability, and performance across the payments lifecycle, helping Tyl maintain its competitive edge in a fierce market.
- Innovation-Driven Growth: Tyl's CEO James Hodgson noted that this partnership will accelerate innovation and unlock new revenue opportunities, ensuring competitiveness in a rapidly changing payments landscape, reflecting Endava's capability in delivering complex strategic engagements.
- Industry Integration and Modernization: With over 20 years of industry experience, Endava is committed to partnering with banks and payment providers to modernize platforms and simplify integrations to meet increasingly complex market demands, driving customer experience and business growth.
See More
Endava to Release Q3 2026 Results on May 21
- Earnings Release Schedule: Endava will announce its third-quarter results for the period ending March 31, 2026, on May 21, 2026, before the opening of U.S. markets, highlighting the company's latest advancements in technology-driven business transformation.
- Executive Conference Call: Following the earnings release, CEO John Cotterell and CFO Mark Thurston will hold a conference call at 8:00 AM ET to discuss the financial results, which is expected to provide deeper insights into the company's future strategies.
- Participant Dial-In Information: Participants can access the call by dialing 1-844-481-2736 (toll-free U.S.) or 1-412-317-0665 (international), using the conference ID for access, ensuring investors can smoothly join the discussion.
- Replay Availability: A replay of the call will be available on Endava's investor relations website after the meeting, allowing investors who could not attend live to access the information, thereby enhancing communication between the company and its investors.
See More
