Endava PLC Reports Revenue Decline Amid Strategic Investments
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 19 2026
0mins
Should l Buy DAVA?
Source: Yahoo Finance
- 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.
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Analyst Views on DAVA
Wall Street analysts forecast DAVA stock price to rise
6 Analyst Rating
2 Buy
4 Hold
0 Sell
Moderate Buy
Current: 5.010
Low
8.00
Averages
10.00
High
15.00
Current: 5.010
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.
Argosy Investors Q4 Moves: New Positions and Exits
- New Investment Position: Argosy Investors acquired shares in Floor & Décor (FND) during Q4, noting that the company's current EBIT margins are approximately 30% below pre-COVID long-term levels, and anticipates margins will scale towards the low-to-mid-teens as the store base expands, enhancing profitability and market competitiveness.
- Exit from Unfavorable Investment: The fund sold its position in Novo Nordisk (NVO) after a brief holding period due to findings from further due diligence indicating a disadvantageous competitive situation, demonstrating caution and flexibility in investment decisions.
- Increased Confidence in Holdings: Argosy also strengthened its position in Endava (DAVA) during Q4, believing that its share price performance is largely company-specific and that there is a significant chance of mean reversion if DAVA can demonstrate inflecting organic revenue growth, indicating confidence in its future growth potential.
- Market Dynamics Insight: In analyzing market dynamics, Argosy is attentive to Novo Nordisk's competitive landscape and market pressures, particularly in light of positive mid-stage trial results for its obesity drug in China, showcasing keen insights into industry trends.
See More
Endava PLC Reports Revenue Decline Amid Strategic Investments
- 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.
See More
Endava Reports Q2 FY2026 Earnings Results
- 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.
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Endava Set to Announce Q2 Earnings on February 19
- 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.
See More
Endava Expands Partnership with Cognition to Enhance AI Delivery
- 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.
See More
Endava Expands Partnership with Cognition for AI-Driven Software Delivery
- 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.
See More
Argosy Investors Q4 Moves: New Positions and Exits
- New Investment Position: Argosy Investors acquired shares in Floor & Décor (FND) during Q4, noting that the company's current EBIT margins are approximately 30% below pre-COVID long-term levels, and anticipates margins will scale towards the low-to-mid-teens as the store base expands, enhancing profitability and market competitiveness.
- Exit from Unfavorable Investment: The fund sold its position in Novo Nordisk (NVO) after a brief holding period due to findings from further due diligence indicating a disadvantageous competitive situation, demonstrating caution and flexibility in investment decisions.
- Increased Confidence in Holdings: Argosy also strengthened its position in Endava (DAVA) during Q4, believing that its share price performance is largely company-specific and that there is a significant chance of mean reversion if DAVA can demonstrate inflecting organic revenue growth, indicating confidence in its future growth potential.
- Market Dynamics Insight: In analyzing market dynamics, Argosy is attentive to Novo Nordisk's competitive landscape and market pressures, particularly in light of positive mid-stage trial results for its obesity drug in China, showcasing keen insights into industry trends.
See More
Endava PLC Reports Revenue Decline Amid Strategic Investments
- 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.
See More
Endava Reports Q2 FY2026 Earnings Results
- 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.
See More
Endava Set to Announce Q2 Earnings on February 19
- 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.
See More
Endava Expands Partnership with Cognition to Enhance AI Delivery
- 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.
See More
Endava Expands Partnership with Cognition for AI-Driven Software Delivery
- 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.
See More
