Germany's Nagarro H1 net profit jumps as revenue edges up

Nagarro SE

14/08/2026 06:06

Overview
Germany AI engineering firm's H1 revenue rose 0.3% yr/yr, with 4.2% growth in constant currency
Adjusted EBITDA for H1 rose 13.7% yr/yr, while gross profit was broadly flat
Net profit for H1 increased 52% yr/yr, helped by lower tax expense

Outlook
Nagarro did not provide specific guidance for future quarters or the full year

Result Drivers
LOWER TAX EXPENSE - Co said net profit rose mainly due to absence of withholding tax expense on intra-group dividends
CASH COLLECTIONS - Q2 operating cash inflow increased due to higher collections from trade receivables and lower taxes paid
LARGE CLIENT BASE - Number of clients generating more than €1 mln revenue in last 12 months rose to 184 as of June 30, 2026

Company press release: ID:nEQ28mvfYa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
 
EUR 500.50 mln
 
H1 Net Income
 
EUR 29.80 mln
 
H1 Adjusted EBITDA
 
EUR 69.10 mln
 
H1 EBIT
 
EUR 49.20 mln
 
H1 EBITDA
 
EUR 66.50 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the it services & consulting peer group is "buy."
Wall Street's median 12-month price target for Nagarro SE is €81.00, about 3.8% above its August 13 closing price of €78.00
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads
Aug 13 - Globant Q2 revenue slightly beats on AI platform growth
Aug 13 - Denmark's Netcompany misses Q2 revenue estimates, lifts FY revenue growth forecast
Aug 11 - Finland's Siili Solutions Q2 revenue falls, cuts guidance

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)