Kainos Sees Robust Sales, Shares Rise 16%

Shares of Kainos, a British IT software developer, jumped 16% after it announced an upbeat annual outlook, expecting £385m in revenue and £66.4m in pre-tax profit for the year ending March 31, 2026. The company's Workday products division passed the $100m annual recurring revenue milestone and momentum is picking up across its divisions.

Shares of Kainos, a British IT software developer, jumped 16% on Monday following the company's announcement of an upbeat annual outlook. Kainos expects to post £385 million in revenue and £66.4 million in pre-tax profit for the financial year ending March 31, 2026 [1, 2]. The company's Workday products division passed the $100 million annual recurring revenue milestone in July, contributing to the positive outlook [1, 2].

Kainos Group PLC, based in London, provides IT services to public sector, commercial, and healthcare customers. The company delivered a sequential improvement in the first quarter of the financial year, building on a strong fourth-quarter 2025 performance. This performance has led to expectations of revenue growth of up to 7.1% from the previous year's £367.2 million [1].

The company's Workday Services division, which builds applications used within the Workday platform, has shown robust growth. Additionally, contract work with the Home Office, NHS England, and the Driver and Vehicle Standards Agency is expected to drive revenue increases in the second half of the financial year [1]. Strong revenue growth in North America, offset by muted commercial sector activity, has also contributed to the positive outlook [1].

Kainos attributes its strong sales performance to the growing use of artificial intelligence, which has boosted search, cloud, and advertising revenues at major tech companies like Microsoft, Alphabet, and Meta [2]. The company's momentum is picking up across its divisions, with new projects prompting increased hiring and greater use of contractors [2].

Despite a volatile macro-economic environment, Kainos remains confident in its financial prospects. The company's robust backlog, healthy pipeline, solid balance sheet, disciplined capital allocation, and strong cash flow support this confidence [1]. Kainos is maintaining a 'prudent' outlook and anticipates delivering adjusted pretax profit in line with current consensus forecasts of £65.1 million to £74.7 million [1].

References:
[1] https://www.ajbell.co.uk/news/articles/kainos-forecasts-top-end-revenue-amid-strong-workday-performance
[2] https://finance.yahoo.com/news/britains-kainos-jumps-upbeat-annual-084752099.html