Endava (NYSE:DAVA) Announces Quarterly Earnings Results

Endava (NYSE:DAVA) issued its quarterly earnings results on Thursday. The company reported $0.22 earnings per share for the quarter, topping analysts’ consensus estimates of $0.21 by $0.01, FiscalAI reports. Endava had a return on equity of 5.66% and a net margin of 1.34%.The company had revenue of $247.57 million for the quarter, compared to analyst estimates of $179.87 million. 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 Trading Down 3.7%

Shares of Endava stock traded down $0.19 during trading hours on Thursday, hitting $5.04. The company’s stock had a trading volume of 1,052,664 shares, compared to its average volume of 499,456. The company has a quick ratio of 2.18, a current ratio of 2.18 and a debt-to-equity ratio of 0.34. The company has a market capitalization of $283.24 million, a PE ratio of 25.20 and a beta of 1.26. The business has a fifty day moving average of $6.33 and a 200 day moving average of $8.42. Endava has a 1-year low of $4.84 and a 1-year high of $33.29.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on DAVA shares. Needham & Company LLC cut their price objective on shares of Endava from $9.00 to $7.00 and set a “buy” rating on the stock in a report on Thursday. William Blair lowered shares of Endava from an “outperform” rating to a “market perform” rating in a research report on Tuesday, November 11th. Wall Street Zen upgraded shares of Endava from a “sell” rating to a “hold” rating in a report on Sunday, February 8th. Guggenheim lowered their price objective on shares of Endava from $15.00 to $13.00 and set a “buy” rating for the company in a research note on Friday, February 13th. Finally, JPMorgan Chase & Co. dropped their price objective on Endava from $13.00 to $10.00 and set a “neutral” rating for the company in a report on Wednesday, November 12th. Three analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Endava presently has a consensus rating of “Hold” and a consensus target price of $15.86.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Advisory Services Network LLC acquired a new position in Endava during the 3rd quarter worth approximately $28,000. EverSource Wealth Advisors LLC grew its position in Endava by 733.6% in the second 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 in the last quarter. Quadrant Capital Group LLC raised its stake in shares of Endava by 901.8% during the fourth 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 during the period. Vident Advisory LLC acquired a new position in shares of Endava during the fourth quarter worth $68,000. Finally, Fox Run Management L.L.C. acquired a new position in shares of Endava during the fourth quarter worth $73,000. Institutional investors and hedge funds own 62.23% of the company’s stock.

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

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.