Endava plc

Endava plc Earnings Recaps

DAVA Information Technology 3 recaps
Q3 2026 May 22, 2026

Endava's shares declined 16.8% after the company reported a disappointing quarter marked by slower-than-expected pipeline conversion and a cautious outlook driven by macroeconomic headwinds, delayed projects in the Middle East, and prolonged execution of large contracts.

Key takeaways
  • Revenue missed expectations due to delayed client work in the Middle East amid ongoing conflict and weaker overall demand driven by an uncertain macroeconomic environment.
  • Large, complex outcome-based contracts took longer to close than anticipated, contributing to a lowered Q4 revenue guide.
  • The company recorded a significant noncash goodwill impairment of GBP 364.6 million, reflecting challenges in near-term execution but not impacting liquidity or operational capacity.
  • Endava is accelerating its strategic pivot towards AI-native delivery, with AI-driven revenues growing from 5% to 15% of total revenue year-over-year (GBP 27 million in Q3 FY26), supported by expanded partnerships including Mastercard, OpenAI, and Google.
  • Despite execution headwinds, management highlights progress in transforming its go-to-market model and deepening client engagement around scalable AI solutions, though near-term demand remains uneven.
Full recap
Q2 2026 Feb 20, 2026

Endava plc reported a revenue of £184.1 million in Q2 FY 2026, reflecting a 5.9% year-over-year decline but a 3.3% increase sequentially, driven by strong initial demand for its AI-native solutions.

Key takeaways
  • Continued investment in AI initiatives, enhancing staffing and operational capabilities to position Endava as a leader in AI-native solutions.
  • Dava Flow, the company's AI-native engagement lifecycle, is gaining traction among clients, yielding faster delivery and improved productivity.
  • New strategic partnerships, including a joint venture with PayNetNets, reinforce Endava's presence in the payments sector.
  • Successful enterprise-wide AI projects underway, demonstrating significant potential to streamline operations and enhance decision-making efficiency for clients.
  • Expectations to expand Dava Flow's delivery portfolio and convert client interest into substantial, outcome-driven programs in the upcoming quarter.
Full recap
Q4 2025 Sep 4, 2025

Endava reported strong fourth-quarter results, achieving its highest-ever order book value, driven by a robust pipeline of AI-focused opportunities. Despite short-term volatility, the company remains optimistic about its transformation to an AI-native model.

Key takeaways
  • Order book value for FY 2025 reached a record high, indicating strong client relationships and engagement with transformative technology.
  • More than half of Endava’s workforce is actively using AI in projects, highlighting a significant shift towards AI-driven solutions.
  • The company successfully developed an AI-driven document processing platform for a U.S. healthcare provider, enhancing operational efficiency and cost management.
  • Continued partnerships with industry leaders, including OpenAI, are bolstering Endava’s AI capabilities and expanding deal flow.
  • The operational environment remains challenging, with clients recalibrating spending, leading to a cautious outlook for fiscal year 2026.
Full recap