Overview
- Endava beat quarterly earnings-per-share expectations but posted a slight revenue miss, reinforcing a mixed print.
- Management guided for the new fiscal year with lower sales than last year, signaling a conservative near-term view.
- The company exited FY2025 with its highest-ever quarterly order book and record signed value, yet warned clients are deferring or repricing work.
- Operational signals deteriorated as headcount fell 5% year over year, the number of £1m-plus clients declined, and the top 10 clients’ revenue share rose.
- Investors sold the stock sharply after the release and several analysts, including at Needham, Morgan Stanley and Guggenheim, cut price targets.