Description

Endava’s AI Revenue Surge: Can Dava.Flow Reset The Growth Story?

Endava plc reported revenue of GBP 178.5 million for the third quarter of fiscal year 2026, reflecting an 8.4% decrease compared to the same period in the prior year and a 6.4% decline on a constant currency basis. The company experienced a revenue shortfall primarily due to extended deal cycles, cautious client spending amid a challenging macroeconomic environment, and delays related to ongoing conflict in the Middle East affecting client activity in that region. Additionally, large, complex outcome-based contracts have taken longer to execute than initially planned, contributing to the slower-than-expected pipeline conversion which has also led to a lowered outlook for the fourth quarter. Endava took a noncash goodwill impairment charge of GBP 364.6 million and derecognized GBP 23.2 million in deferred tax assets relating to UK tax losses; these one-off accounting adjustments do not impact liquidity, delivery capabilities, or capital expenditure plans.