Endava (NYSE:DAVA) Issues Earnings Results

Endava (NYSE:DAVA) posted its quarterly earnings data on Thursday. The company reported $0.22 earnings per share for the quarter, beating analysts’ consensus estimates of $0.21 by $0.01, FiscalAI reports. The company had revenue of $247.57 million during the quarter, compared to analysts’ expectations of $179.87 million. Endava had a net margin of 1.34% and a return on equity of 5.66%. Endava updated its FY 2026 guidance to 1.100-1.180 EPS and its Q3 2026 guidance to 0.250-0.290 EPS.

Here are the key takeaways from Endava’s conference call:

• Endava reports growing client traction for Dava Flow and its broader AI-native shift, with live engagements showing faster delivery, full traceability, and partnerships (OpenAI, Miro, Cognition) that broaden go‑to‑market and agentic coding capabilities.
• Revenue was GBP 184.1m in Q2, down 5.9% year‑over‑year (but up 3.3% sequentially); guidance for Q3 and FY26 still implies modest constant‑currency declines, reflecting ongoing top‑line pressure.
• Profitability weakened — adjusted PBT fell to GBP 10.7m (adjusted PBT margin 5.8% vs 11.2% prior year); management says ~3 percentage points of margin were sacrificed due to accelerated investment in AI‑native delivery and next‑gen talent.
• The company highlighted tangible commercial wins and expansions — including selection by the PayNet NETS JV to build a cloud‑native cross‑border payment switch on AWS, renewals with major payments customers, and new engagements across hospitality, EV, banking and life sciences.
• Capital activity included repurchasing ~8m ADSs for $121.9m (with $28.1m remaining) while borrowings rose to GBP 202.7m to support the program and cash ended at GBP 68.5m, combining shareholder return with higher leverage.

Endava Stock Performance

NYSE:DAVA traded down $0.19 during midday trading on Thursday, reaching $5.04. 1,052,664 shares of the company traded hands, compared to its average volume of 499,456. The company has a fifty day moving average price of $6.33 and a 200 day moving average price of $8.42. Endava has a twelve month low of $4.84 and a twelve month high of $33.29. The firm has a market capitalization of $283.24 million, a price-to-earnings ratio of 25.20 and a beta of 1.26. The company has a debt-to-equity ratio of 0.34, a current ratio of 2.18 and a quick ratio of 2.18.

Key Stories Impacting Endava

Here are the key news stories impacting Endava this week:

• Positive Sentiment: Revenue and guidance beat — Endava reported quarterly revenue of $248.02M versus consensus ~ $179.9M and issued raised Q3 and FY2026 guidance (Q3 EPS 0.250–0.290 vs. cons. 0.120; FY EPS 1.100–1.180 vs. cons. 0.400), signaling stronger-than-expected demand and validating its AI pivot. Business Wire: Q2 Results
• Positive Sentiment: AI strategy and partner expansion — Endava expanded its Cognition partnership to scale “governed agentic coding,” reinforcing its positioning as an AI-native services provider that could drive higher-margin work and pipeline growth. Business Wire: Cognition Partnership
• Neutral Sentiment: Detailed readouts available — The earnings call transcript and slides provide management color on AI investments, margins and customer demand that will matter for upcoming quarters; listen/read for specifics on margin timing and bookings. Earnings Transcript Press Release / Slide Deck
• Neutral Sentiment: Mixed EPS reads — Some outlets report Endava missed EPS consensus (MarketBeat lists $0.07 vs. $0.21 est.), while others (Zacks) indicate EPS matched estimates. This discrepancy is creating short-term volatility until reconciled in the call/transcript. MarketBeat: Earnings Zacks: EPS Match
• Negative Sentiment: Analyst price-target cut — Needham lowered its price target from $9.00 to $7.00 (still a “buy”), which reduces near-term upside expectations and may pressure the stock despite positive guidance. Benzinga: Needham PT Cut

Analysts Set New Price Targets

A number of research analysts recently commented on the company. Morgan Stanley reduced their price target on Endava from $11.00 to $8.00 and set an “equal weight” rating for the company in a report on Thursday, November 13th. Needham & Company LLC cut their target price on Endava from $9.00 to $7.00 and set a “buy” rating on the stock in a research report on Thursday. Zacks Research raised shares of Endava from a “strong sell” rating to a “hold” rating in a research report on Friday, November 7th. William Blair lowered shares of Endava from an “outperform” rating to a “market perform” rating in a research note on Tuesday, November 11th. Finally, Guggenheim reduced their price objective on shares of Endava from $15.00 to $13.00 and set a “buy” rating on the stock in a research note on Friday, February 13th. Three research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Endava presently has a consensus rating of “Hold” and an average target price of $15.86.

Institutional Investors Weigh In On Endava

A number of hedge funds and other institutional investors have recently modified their holdings of DAVA. Advisory Services Network LLC bought a new position in Endava in the 3rd quarter valued at about $28,000. EverSource Wealth Advisors LLC lifted its holdings in Endava by 733.6% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,909 shares of the company’s stock valued at $29,000 after acquiring an additional 1,680 shares during the last quarter. Quadrant Capital Group LLC boosted its position in shares of Endava by 901.8% during the 4th quarter. Quadrant Capital Group LLC now owns 6,101 shares of the company’s stock valued at $39,000 after purchasing an additional 5,492 shares in the last quarter. Vident Advisory LLC bought a new stake in shares of Endava in the 4th quarter worth approximately $68,000. Finally, Fox Run Management L.L.C. acquired a new stake in Endava during the fourth quarter valued at approximately $73,000. 62.23% of the stock is currently owned by institutional investors.

About Endava

Endava PLC is a publicly traded technology services company specializing in digital transformation and agile software development. The firm helps enterprise clients design, build and manage custom software solutions across industries such as financial services, payments, retail, telecommunications and media. Its service offerings span end-to-end product design, customer experience, application development, quality engineering, DevOps, automation and artificial intelligence, all delivered through agile methodologies.

Founded in 2000, Endava has grown from a small software provider into a global IT partner.