Finland's TietoEVRY Q2 revenue falls on consulting demand weakens

Tieto Oyj

22/07/2026 07:10

    

    Overview
  
Finland software and digital services firm's Q2 revenue fell 8% yr/yr on weaker consulting demand
Adjusted EBITA margin rose to 14.9%, driven by cost optimization across all businesses
Company completed divestments and launched new EUR 90 mln share buyback programme

    

    Outlook
  
TietoEVRY expects 2026 organic growth of -5% to -3%
Company sees 2026 adjusted operating margin at 14.8–15.8%
Company expects software business growth to pick up towards year-end as headwinds subside

    

    Result Drivers
  
WEAK CONSULTING DEMAND - Co said lower Q2 revenue mainly reflected weaker demand in technology consulting, with customers postponing investment decisions due to increased geopolitical uncertainty
SOFTWARE HEADWINDS - Growth in software businesses was affected by legacy contract headwinds in Banktech and Caretech, as well as softer market conditions in Indtech and Banktech
COST OPTIMIZATION - Profitability improved across all businesses, driven by cost optimization, organizational simplification and enhanced execution

    
Company press release: ID:nWkrbd7ygb

    

    Key Details
  

            Metric
          

            Beat/Miss
          

            Actual
          

            Consensus Estimate
          
Q2 Revenue
 
EUR 426.60 mln
 
Q2 EBIT
 
EUR 111.60 mln
 

    

    Analyst Coverage
  
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 5 "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 Tieto Oyj is €18.75, about 6.1% above its July 21 closing price of €17.68
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 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.)