EarningsQ3 2026 Earnings Report
MX:DAVAN Q3 2026 EPS Results
Actual EPS$1.15
Consensus EPS$4.66
Beat/MissMissed by -$3.51
One Year Ago EPS$7.80
MX:DAVAN Q3 2026 Revenue Results
Actual Revenue$4.09B
Expected Revenue$4.22B
Beat/MissMissed by -$129.98M
YoY Revenue Growth-1.96%
Earnings Announcement Details
QuarterQ3 2026
Date05/21/2026
TimeBefore Open
Conference CallThursday, May 21, 2026
MX:DAVAN Upcoming Earnings
Endava's next earnings date is estimated for September 22, 2026, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:DAVAN Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Negative
The call contained meaningful strategic progress — notably faster AI-driven revenue growth (up to 15% of revenue), stronger partnerships (Mastercard, Google, OpenAI), accelerated Dava.Flow adoption (12 clients), and productized marketplace momentum — all positive signs for Endava’s long-term pivot to AI-native delivery. However, these strategic wins were overshadowed by significant near-term financial and operational headwinds: an 8.4% YoY revenue decline, extended sales cycles and weaker pipeline conversion, a large non-cash goodwill impairment (GBP 364.6m) driving a GBP 372m loss before tax, sharply compressed adjusted margins and EPS, negative free cash flow in the quarter, and higher borrowings. Management emphasized these impairments are non-cash and framed many issues as timing and execution challenges while reiterating investments in AI skills and GTM. Balancing the sizable one-off impairments and current operating softness against encouraging progress on AI productization and strategic client wins, the near-term financial picture is weak despite promising long-term positioning.Company Guidance
AI-driven revenue acceleration
AI-driven business grew from 5% of revenue in Q3 FY25 to 15% of revenue (GBP 27 million) in Q3 FY26, showing meaningful traction in the company pivot to AI-native delivery. Management highlighted higher margins on AI-driven work versus traditional digital transformation.
Dava.Flow adoption expansion
Dava.Flow deployments increased to 12 clients this quarter from 3 clients last quarter, indicating accelerating product adoption and commercialization of Endava's AI-native delivery framework.
Strategic partnerships and go-to-market progress
Expanded partner network including collaborations with Mastercard and deepening relationships with hyperscalers (Google, OpenAI, AWS, Microsoft). Invited to Google AI Agent partner program and early commercial wins tied to Google Cloud and Gemini Enterprise.
Payments (PGX) momentum and notable wins
PGX accelerator saw new signings over the last 3 months and significant strategic engagements including selection by Tyl (NatWest Group's merchant payments arm) and two additional PGX wins (a global payments provider and a pan-European energy retailer).
Productized marketplace progress
Management expects to launch more than 15 marketplace offerings this year with 10 already live, aligning Dava.Flow with hyperscaler platforms to shorten time-to-value for clients.
Client renewals and large-scale government engagement
Renewal with Slovenia's Ministry of Finance and Financial Administration through 2028 (multi-decade relationship) and extension/expansion with other clients such as North Standard and a global vehicle manufacturer, demonstrating strength in mission-critical, high-volume work.
Operational productivity examples
Google Cloud agent pilot for a European media group reduced time engineers spend locating materials by ~60% and cut onboarding time by ~30%, evidencing tangible productivity gains from Endava's agentic/AI solutions.
Ongoing investment in skills and GTM
Increased go-to-market investments and training (bench increased for AI and Dava.Flow skills) to support the AI-native transition; over 1,000 engineers are receiving Dava.Flow training (over 10% of direct staff).
MX:DAVAN Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed