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- **Revenue Resilience**: Q2 FY26 revenue of GBP 184.1 million (-5.9% YoY) reflects strategic AI investments, with North America down 5.1% YoY due to FX.
- **AI-Driven Growth**: Dava.Flow engagement model shows 90-minute value assessments, winning a GBP 184 million cloud payment switch deal.
- **Financial Challenges**: Adjusted PBT margin of 5.8% (-5.4ppt YoY) due to 3% AI investment drag, with FY26 EPS guidance of 80-86p.
- **Strategic Wins**: Renewed payments contracts, EV CRM partnership, and Accor Plus loyalty program expansion (+39% conversion).
- **Q4 Outlook**: Sequential growth of 8% (Q3 +4%) driven by working days, despite 4% YoY decline.

**【CEO Summary Section】**
- **Revenue Performance**: Q2 FY26 revenue of GBP 184.1 million (-5.9% YoY, +3.3% QoQ) reflects ongoing AI investments and client engagement shifts. North America revenue declined 5.1% YoY due to FX headwinds and a lost media client.
- **AI Strategy & Dava.Flow**: 
  - Launched Dava.Flow, an AI-native engagement model, with 2 live projects showing 90-minute value assessments vs. weeks under legacy methods.
  - Partnered with OpenAI, AWS, and Miro to accelerate AI adoption, including enterprise ChatGPT deployments for clients like Evoke.
  - Won a GBP 184.1 million cloud-native payment switch project with PayNet-NETS, highlighting AI-driven innovation in payments.
- **Client Wins & Expansion**: 
  - Secured a 3-year EV CRM partnership replacing a global competitor.
  - Renewed contracts with top payments clients, extending work on switch gateways and cost rationalization.
  - Expanded with Accor Plus, driving 39% conversion growth in loyalty programs.
- **Talent & Operations**: 
  - 11,385 employees (-2.4% YoY), with focus on AI talent upskilling and legacy role streamlining.
  - Introduced Dava.Rise, a venture acceleration program, to co-develop enterprise-scale AI solutions.

**【CFO Financial Commentary】**
- **Financial Results**: 
  - Adjusted PBT of GBP 10.7 million (-50.5% YoY), margin 5.8% (vs. 11.2% YoY), impacted by 3% AI investment drag.
  - Adjusted EPS 16p (-46.7% YoY) due to lower margins and share buybacks.
  - Free cash flow GBP 20.1 million (-36.5% YoY) from lower collections and capex on a payments accelerator.
- **FX Impact**: 
  - USD weakness (-3.3% YoY) and lower working days (-3% QoQ) constrained growth.
  - FY26 constant currency revenue expected to decline 3.5%-1.5% YoY, with Q4 growth driven by 2% higher working days.
- **Guidance**: 
  - Q3 FY26: GBP 182-185 million (+1.1% YoY at midpoint), EPS 18-21p.
  - FY26: GBP 736-750 million (-3.5% to +1.5% YoY), EPS 80-86p.
  - Share buyback program: ~$121.9 million executed, $28.1 million remaining.

**【Q&A Highlights】**
- **Growth Drivers**: Q4 sequential growth (8%) attributed to new deals and working days, despite 4% YoY decline.
- **OpenAI Partnership**: Enterprise ChatGPT adoption accelerating, with Evoke case study showing responsible AI deployment.
- **Pricing Trends**: Shift to outcome-based models (e.g., Dava.Flow) with variable margins, early wins in payments and healthcare.
- **Dava.Flow Adoption**: Early-stage, applied to large outcome-based projects with promising velocity improvements.
- **Risks**: FX volatility, AI talent competition, and macroeconomic uncertainty in financial services.


Endava plc (DAVA) Q2 2026 Earnings Call Transcript

- **Revenue Miss and Strategic Deal**: Q1 FY2026 revenue missed due to a £10M client credit, but a $100M multi-year payments deal highlights AI-native transformation success.
- **AI Productivity Gains**: 70% of services now involve AI, with DARVA Flow driving 25-35% productivity gains in code reviews and testing.
- **Margin Pressure and Recovery**: Adjusted PBT margin dropped to 5.5%, but FY2026 guidance reflects cautious pipeline conversion (£735-752M) and large deal ramp-up in H2.
- **Operational Shift**: Transition to outcome-based deals (24% of revenue) is prioritized, with 470 new AI hires and mandatory DARVA Flow training by year-end.

**【CEO Summary Section】**
- **Revenue Miss and Challenges**: Q1 FY2026 revenue of £178.2M (-8.6% YoY) fell short of guidance due to an unexpected £10M client credit and pipeline conversion delays. The company secured a multi-year $100M deal with a payments firm, showcasing AI-native transformation capabilities.
- **AI-Driven Growth**: 70% of services now involve AI, with examples like automating medical bill processing (95%+ accuracy) and AI-assisted code migration (30x faster). DARVA Flow, an AI-native delivery model, is being rolled out across 11,636 employees, with 470 new hires from the DARVA X Academy.
- **Strategic Shift**: Transitioning from TNM (76% of revenue) to outcome-based deals (24%) is driving productivity gains (5-10x) but causing short-term margin pressure. The company aims to lock in long-term partnerships, e.g., with Toyota Racing and Convex.

**【CFO Financial Commentary】**
- **Financial Results**: Adjusted PBT margin dropped to 5.5% (-440bps YoY), with EPS of £0.15 (-40% YoY). Adjusted free cash flow improved to £9.2M, but cash reserves declined to £47.2M. Capital expenditures rose to 1.7% of revenue.
- **Guidance Update**: Q2 FY2026 revenue expected £179-182M (-8% to -7% YoY), with FY2026 at £735-752M (-4.5% to -2.5% YoY). The lower guide reflects cautious pipeline conversion assumptions, offset by large signed deals.
- **Leverage and Margin**: Operational leverage will drive margin recovery as large deals ramp up. Share buybacks continue ($34.1M remaining), but investments in AI talent and DARVA Flow are prioritized.

**【Q&A Key Highlights】**
- **Client Credit Clarification**: The £10M credit was procedural, not execution-related, and isolated. If absent, revenue would have met the low end of guidance.
- **Pipeline Conversion**: Non-strategic deal conversion was 50-80% of high/low pipeline, below expectations. FY2026 guide lowered to £752M (from £765M) to account for pipeline risk.
- **DARVA Flow Productivity**: Early wins show 25-35% productivity gains via AI in code reviews and testing. Full-phase completion could double this impact.
- **Headcount Strategy**: 2% YoY headcount decline reflects AI talent expansion (470 hires) and attrition in non-AI roles. DARVA Flow training will be mandatory by year-end.
- **Macro Considerations**: No unusual client churn; the payments deal is net new business. Pricing stability in TNM suggests demand resilience despite macro headwinds.

Endava plc (DAVA) Q1 2026 Earnings Call Transcript

- **AI-Native Transformation**: Over 50% of workforce using AI, with pilot projects showing 10x productivity gains via Endava Flow.
- **Record Order Book**: Q4 FY25 signings highest on record, but Q1 FY26 revenue down 6% YoY due to delayed project ramps.
- **Margin Challenges**: 3% PBT margin headwind from AI investments and bonuses, offsetting 10.1% YoY PBT growth.
- **Strategic Wins**: 5-year RX deal, North American financial institution partnership, and hyperscaler AI tool deployment.
- **Geographic Shifts**: North America revenue down 5.3% YoY (FX), U.K. up 5.9%, healthcare +104% YoY.

**【CEO Summary Section】**
- Endava is transitioning to become AI-native, with over half of its workforce now using AI in projects. Key AI initiatives include scaling a medical records processing platform, developing an in-cabin driver identification system, and creating AI tools for creative workflows.
- The company signed its highest-ever order book value in Q4 FY25, driven by transformative offerings and client relationships. Notable deals include a 5-year agreement with Reed Exhibitions and a partnership with a North American financial institution.
- Endava Flow, a new delivery model integrating AI agents with human engineers, achieved up to 10x productivity improvements in pilot projects. This model is expected to drive long-term operational efficiency.
- Strategic partnerships with OpenAI, AWS, Microsoft, and Google are accelerating AI adoption, leading to client wins such as a hyperscaler's AI tool deployment and a reinsurer's AI-native architecture project.

**【CFO Financial Commentary】**
- Q4 FY25 revenue: GBP 186.8 million (-3.9% YoY, -0.7% in constant currency). Adjusted PBT: GBP 16.4 million (+10.1% YoY). Adjusted EPS: 24p (+13.6% YoY).
- FY25 revenue: GBP 772.3 million (+4.3% YoY, +6.3% in constant currency). Adjusted PBT: GBP 82.1 million (-1.1% YoY). Adjusted EPS: 113p (+1.8% YoY).
- Q1 FY26 guidance: Revenue GBP 181-183 million (-6% to -5% YoY in constant currency). Adjusted EPS: 17p-19p.
- FY26 guidance: Revenue GBP 750-765 million (-1.5% to +0.5% YoY in constant currency). Adjusted EPS: 82p-94p.
- Margins impacted by 3% headwind from AI investments, bonus reinstatement, and Endava Flow program costs.

**【Q&A Highlights】**
- **Order Book vs. Growth**: Strong pipeline (highest ever signed in Q4) but delayed revenue ramp due to project timing and multiyear deal phasing. Example: a large Q4 deal will contribute in H2 FY26.
- **Margin Pressure**: 3% adjusted PBT margin reduction from AI investments and bonuses, offsetting underlying margin expansion. Sequential growth expected post-Q1 as new deals ramp.
- **Client Dynamics**: Payments vertical decline (19% YoY) offset by growth in banking (+37%), insurance (+12%), and healthcare (+104%). North America revenue down 5.3% YoY due to FX, but U.K. up 5.9%.
- **Flexible Pricing**: Transaction-based models (e.g., Mastercard partnership) balance risk/reward, with upside from volume growth. Outcome-based deals reduce client uncertainty but require rigorous risk assessment.
- **Headcount**: 11,479 employees (-5% YoY), prioritizing AI, data, and cloud skills. FY26 hiring focused on supporting AI initiatives and client demand.

Endava Plc (DAVA) Q4 2025 Earnings Call Transcript

- **Revenue Resilience**: Q3 revenue up 11.7% YoY to £194.8M, driven by North America (37.1% growth) despite FX headwinds.
- **AI-Driven Innovation**: Pioneering partnerships with Open AI, Google, and AlixPartners; AI projects deliver 19% accuracy improvement in healthcare and workflow acceleration in insurance.
- **Share Buyback Boost**: $39.7M repurchased; $110.3M remaining under expanded program, signaling confidence in long-term value.
- **FX Risk**: Q4 guidance reflects -3% growth impact from dollar weakness, highlighting macroeconomic volatility.
- **Pipeline Momentum**: 24 large deals in pipeline, with 5 closed in Q3, positioning for future revenue growth.

**【CEO Summary Section】**
- **Challenging Environment**: Slowed growth due to U.S. dollar weakness and unsigned deals in North America and Asia Pacific. Pipeline of large deals (24) is growing but conversion to revenue is slower than expected.
- **AI and Partnerships**: Pioneered Open AI’s beta services, partnered with Google Agent Space, AlixPartners, SideFX, and Backbase. Highlighted AI projects in healthcare (19% accuracy improvement), insurance (workflow acceleration), and golf performance (AI-powered swing analysis).
- **Strategic Moves**: Increased share buyback by $50M, focused on cost control, and expanded AI-driven solutions.

**【CFO Financial Commentary】**
- **Q3 Results**: Revenue £194.8M (+11.7% YoY), adjusted PBT £24.6M, adjusted EPS 34 pence (vs. guide 31-32 pence). North America revenue up 37.1% due to Galaxy acquisition.
- **FX Impact**: Q4 guidance includes -3% growth impact from dollar weakness. Full-year revenue guidance £771.5-773.5M (+6.0-6.5% YoY in constant currency).
- **Share Buyback**: $39.7M repurchased; $60.3M remaining, with additional $50M authorization.

**【Q&A Key Highlights】**
- **Pricing Dynamics**: Competitive but maintaining day rates; AI-driven efficiency offsets cost pressures.
- **Headcount Trends**: 11,365 employees (+3.1% YoY), shift to AI, data, cloud skills; attrition due to re-skilling.
- **Regional Challenges**: North America growth hampered by FX and deal delays; U.K. and Europe stable, APAC underperforming.
- **AI Traction**: Agentic AI solutions (teams of AI agents) gaining traction in enterprise applications, with partnerships driving deal flow.

Endava (DAVA) Q3 2025 Earnings Call Transcript

- **AI-Driven Growth**: Core modernization projects in banking (+43.6% YoY) and North America (32.7% revenue growth) lead the charge.
- **Client Confidence**: 92% of clients likely to recommend Endava, up from 91% prior quarter.
- **Financial Resilience**: Beat Q2 EPS guidance (£0.30 vs. £0.24-£0.25) despite macro headwinds in UK and EMEA.
- **Share Buyback**: $100M program signals confidence in long-term value creation.
- **Risk Watch**: TMT and mobility verticals lag as clients prioritize AI transformation over legacy projects.

**【CEO Summary Section】**
- Emphasized AI-driven core modernization as a growth driver, citing 43.6% YoY growth in banking and capital markets vertical.
- Highlighted large-scale projects with clients like fintech providers and North American financial institutions, showcasing use of accelerators (Ray, Maps, Dash) for application modernization.
- Announced $100M share buyback program to optimize capital allocation.
- Client satisfaction metrics improved: 92% likelihood to recommend (vs. 91% prior) and 90% likelihood to repurchase (vs. 88% prior).

**【CFO Financial Commentary】**
- Q2 FY2025 revenue: £195.6M (+6.6% YoY), with North America up 32.7% driven by GalaxE integration.
- Adjusted EPS: £0.30 (vs. guidance of £0.24-£0.25), supported by 5% YoY decline in operating expenses.
- Adjusted PBT margin: 11.2% (down from 12.4% YoY), with margin recovery expected in H2.
- Q3 FY2025 guidance: £198-£200M revenue (+13-14% CAGR), £0.31-£0.32 EPS.
- FY2025 full-year guidance: £795-£800M revenue (+8.5-9% CAGR), £1.20-£1.23 EPS.

**【Q&A Key Themes】**
- **Macro Risks**: UK and Rest of World revenue down 43.5% YoY due to client caution; TMT and mobility verticals under pressure.
- **Large Deal Pipeline**: Core modernization projects with 2+ year sales cycles expected to accelerate Q4 revenue.
- **Pricing Dynamics**: Modest improvement in utilization (6-7%) and pricing through outcome-based contracts.
- **GalaxE Integration**: Systems cutover complete; cost synergies to materialize in FY2026.
- **Talent Strategy**: Focus on reskilling existing workforce for AI adoption (80% of Endavans using Gen AI daily).

Actual								0.2852	0.2842	0.3361	0.3964	0.4691	0.5664	0.6601	0.6218	0.6304	0.6207	0.6026	0.6894	0.7276	0.7235	0.4757	0.3819	0.2777	0.2781	0.3343	0.3753	0.4391	0.3295	0.2016	0.2165
Forecast								0.2678	0.1986	0.2739	0.3572	0.3807	0.4887	0.5789	0.5899	0.5619	0.5929	0.5674	0.6906	0.6553	0.5704	0.4225	0.3708	0.2395	0.2859	0.2861	0.326	0.3984	0.3163	0.2448	0.2068
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	+6.50%	+43.10%	+22.71%	+10.97%	+23.22%	+15.90%	+14.03%	+5.41%	+12.19%	+4.69%	+6.20%	-0.17%	+11.03%	+26.84%	+12.59%	+2.99%	+15.95%	-2.73%	+16.85%	+15.12%	+10.22%	+4.17%	-17.65%	+4.69%

DAVA

DAVA fundamentals

DAVA Q2 2026 Earnings

Earnings Call

You can ask Aime

DAVA

DAVA fundamentals

DAVA Q2 2026 Earnings

Earnings Call

DAVA Earnings Call Summary for Q2/20268:00 AM on Feb 19, 2026

DAVA Earnings Call Summary for Q1/20268:00 AM on Nov 11, 2025

DAVA Earnings Call Summary for Q4/20258:00 AM on Sep 4, 2025

DAVA Earnings Call Summary for Q3/20258:00 AM on May 14, 2025

DAVA Earnings Call Summary for Q2/20258:00 AM on Feb 20, 2025

You can ask Aime