Finland's TietoEVRY Q1 revenue hit by weak consulting market, cost cuts help margins

Tieto Oyj

29/04/2026 07:20

Overview

Finland software and digital engineering firm's Q1 revenue fell 3% yr/yr on weak consulting demand

Adjusted EBITA margin rose to 14.7%, driven by cost optimization and strong software margins

Company maintained full-year outlook, continues strategic transformation and AI upskilling initiatives

Outlook

TietoEVRY maintains full-year 2026 organic growth outlook at -2% to 0%

Company expects 2026 adjusted operating margin of 14.8–15.8%

TietoEVRY says weak market conditions persist in consulting business, further cost-saving measures initiated

Result Drivers

CONSULTING WEAKNESS - Revenue was negatively affected by continued market weakness in the consulting business and the phasing out of legacy contracts

COST OPTIMIZATION - Adjusted EBITA margin improvement was driven by the company's cost optimization programme and strong software business margins

STRATEGIC TRANSFORMATION - Ongoing transformation initiatives, including AI upskilling and new partnerships, are aimed at driving efficiency and future growth

Company press release: ID:nWkr9vyNYk

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
EUR 448.3 mln
Q1 EBIT
EUR 79.6 mln
Q1 Operating Cash Flow
EUR 84.8 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 6 "hold" and 3 "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 €19.45, about 5.8% above its April 28 closing price of €18.39

The stock recently traded at 11 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.)