Endava Reports Q2 FY2026 Earnings Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 hours ago
0mins
Should l Buy DAVA?
Source: seekingalpha
- 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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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: 5.230
Low
8.00
Averages
10.00
High
15.00
Current: 5.230
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 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 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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- 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.
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- 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
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- 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 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
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- 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
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- 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.
See More
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- Market Cap Growth: Shopify's market cap has reached $217 billion, significantly exceeding previous estimates of $150-190 billion, reflecting strong market confidence in its e-commerce platform.
- User Base Expansion: The company has attracted a large number of new users by providing convenient online store solutions, enhancing its market share and competitiveness in the e-commerce sector.
- Diversified Revenue Sources: Shopify not only relies on e-commerce transactions but also enhances overall profitability through diversified revenue streams such as value-added services and payment processing.
- Optimistic Future Outlook: With the continued growth of the e-commerce industry, Shopify is expected to further expand its market share, solidifying its leadership position among global e-commerce platforms.
See More
