Endava Ltd (NYSE:DAVA) saw its shares tumble more than 20% in premarket trading Thursday after the software company’s guidance for the current quarter and full fiscal 2026 fell below analyst expectations.
The company reported fiscal Q4 2025 earnings per share (EPS) of £0.24, slightly above the analyst consensus of £0.23. Revenue for the quarter came in at £186.8 million, in line with estimates. Adjusted profit before tax rose to £16.4 million, or 8.8% of revenue, compared with £14.9 million, or 7.7% of revenue, in the same quarter last year.
“AI continues to be a strategic focus for many of our clients and we have now passed the point where over half of our people use AI in projects, a clear marker of progress in our journey to becoming AI-native,” said Endava CEO John Cotterell.
He added, “Endava exited FY2025 with its highest ever quarterly order book, lifting full-year signed value to a record high. Despite the increase in the order book, the short term operating backdrop remains volatile and many clients continue to recalibrate the timing of spending, and therefore our outlook remains cautious.”
Looking ahead, Endava guided fiscal Q1 2026 EPS to a range of £0.17 to £0.19, below the consensus estimate of £0.27, on revenue of £181 million to £183 million versus the expected £188.8 million. For the full fiscal year 2026, the company forecast EPS of £0.82 to £0.94, short of the consensus of £1.12, and revenue of £750 million to £765 million, below analysts’ estimate of £772.1 million.
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