Endava (NYSE:DAVA) Releases Earnings Results, Misses Estimates By $0.20 EPS

Endava (NYSE:DAVA) issued its quarterly earnings data on Thursday. The company reported $0.07 EPS for the quarter, missing the consensus estimate of $0.27 by ($0.20), FiscalAI reports. Endava had a negative net margin of 0.51% and a positive return on equity of 5.16%. The firm had revenue of $236.44 million for the quarter, compared to analysts’ expectations of $242.79 million. Endava updated its Q4 2026 guidance to 0.120-0.180 EPS and its FY 2026 guidance to 0.610-0.660 EPS.

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

• Q3 revenue missed expectations at £178.5 million, down 8.4% year over year, as pipeline conversion slowed and some work slipped beyond March.
• The company cut its Q4 and full-year FY2026 guidance, citing delayed Middle East projects, softer macro demand, and slower execution on large outcome-based contracts.
• Endava booked a £364.6 million non-cash goodwill impairment and a £23.2 million deferred tax asset write-off, driving a £372 million pre-tax loss for the quarter.
• Management said its AI-driven business grew to 15% of revenue from 5% a year ago, and 12 clients now use Dava.Flow versus 3 last quarter, supporting a higher-margin mix shift.
• The company highlighted new partnerships and wins, including Mastercard, Google Cloud, and NatWest’s Tyl, as evidence that clients are moving from AI pilots to production-grade, outcome-based programs.

Endava Trading Down 17.1%

DAVA stock opened at $3.32 on Thursday. The company has a market capitalization of $186.45 million, a PE ratio of -30.15 and a beta of 1.11. The company has a debt-to-equity ratio of 0.36, a quick ratio of 2.39 and a current ratio of 2.39. Endava has a one year low of $3.13 and a one year high of $17.36. The company’s 50 day moving average price is $4.40 and its two-hundred day moving average price is $5.68.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on DAVA shares. Needham & Company LLC dropped their price objective on Endava from $9.00 to $7.00 and set a “buy” rating for the company in a research note on Thursday, February 19th. TD Cowen lowered their price target on Endava from $6.50 to $6.00 and set a “buy” rating on the stock in a report on Monday, April 6th. Guggenheim cut their price objective on Endava from $15.00 to $13.00 and set a “buy” rating for the company in a report on Friday, February 13th. Wall Street Zen upgraded shares of Endava from a “sell” rating to a “hold” rating in a research report on Sunday, February 8th. Finally, Weiss Ratings reiterated a “sell (d)” rating on shares of Endava in a research report on Tuesday, April 7th. Three investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, Endava currently has an average rating of “Hold” and a consensus target price of $9.50.

Hedge Funds Weigh In On Endava

A number of large investors have recently added to or reduced their stakes in DAVA. EverSource Wealth Advisors LLC grew its stake in shares of Endava by 733.6% during the second quarter. EverSource Wealth Advisors LLC now owns 1,909 shares of the company’s stock valued at $29,000 after buying an additional 1,680 shares during the last quarter. Advisory Services Network LLC purchased a new stake in Endava during the 3rd quarter valued at about $28,000. Quadrant Capital Group LLC grew its position in Endava by 901.8% during the 4th quarter. Quadrant Capital Group LLC now owns 6,101 shares of the company’s stock worth $39,000 after acquiring an additional 5,492 shares during the last quarter. Vident Advisory LLC purchased a new position in Endava in the 2nd quarter worth approximately $160,000. Finally, Jane Street Group LLC lifted its position in Endava by 16.1% in the first quarter. Jane Street Group LLC now owns 10,682 shares of the company’s stock valued at $208,000 after purchasing an additional 1,482 shares during the last quarter. Hedge funds and other institutional investors own 62.23% of the company’s stock.

Endava Company Profile

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.