Endava Q2 Revenue Beats by £4.6M, EPS Tops Estimates, Shares Jump 5.5%
Endava reported Q2 revenue of £184.1M, beating estimates by £4.58M despite a 5.9% year-over-year decline, and delivered adjusted EPS of £0.16 versus £0.15 consensus, driving a 5.5% share surge. The company forecast Q3 revenue of £182.0-£185.0M with EPS of £0.18-£0.21 and highlighted strong demand for its AI-native Dava.Flow product.
1. Q2 Fiscal 2026 Results
Endava reported Q2 revenue of £184.1 million, down 5.9% year-over-year but exceeding the £179.52 million consensus, and delivered adjusted EPS of £0.16 compared with estimates of £0.15 and prior-year £0.30.
2. Share Performance and Market Reaction
Shares rose 5.5% on the back of the earnings beat and sequential revenue growth of 3.3% quarter-over-quarter, reflecting investor confidence in the company's technology transformation strategy.
3. AI Pivot and Product Highlights
Endava emphasized its shift toward artificial intelligence, highlighting strong client interest in the AI-native Dava.Flow engagement lifecycle product and expanded strategic partnerships.
4. Q3 and Full-Year Guidance
The company guided Q3 revenue of £182.0-£185.0 million (a 2.5% to 4.0% constant-currency decline) with EPS of £0.18-£0.21, and full-year revenue of £736.0-£750.0 million with EPS of £0.80-£0.86.