Germany's Nagarro Q1 revenue up 6.5% in constant currency

Nagarro SE

15/05/2026 06:46

Overview

Germany AI engineering firm's Q1 revenue up 0.5% yr/yr, 6.5% in constant currency

Net profit for Q1 rose 70.7% yr/yr, aided by reversal of share-based payment costs

Operating cash flow turned negative, mainly due to higher working capital needs

Outlook

Company did not provide specific guidance for the current quarter or full year

Result Drivers

AI TRANSFORMATION FOCUS - Co said it is advancing as an AI transformation and engineering company and strengthening advisory capabilities, per CEO Manas Human

SHIFT TO MANAGED SERVICES - Number of large clients declined as several implementation-led programs were completed and converted into recurring managed services

Company press release: ID:nEQ1tlbHMa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
EUR 248.1 mln
Q1 Net Income
EUR 19.2 mln
Q1 Adjusted EBITDA
EUR 31.2 mln
Q1 Gross Margin
31.2%
Q1 EBIT
EUR 30 mln
Q1 EBITDA
EUR 38.8 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and 1 "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 €72.00, about 65.5% above its May 14 closing price of €43.50

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 12 three months ago

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(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.)