Finland's TietoEVRY Q4 revenue falls 2%, margin improves

Tieto Oyj

12/02/2026 07:11

Overview

Finland software firm's Q4 revenue declined 2% due to market weakness

Adjusted operating margin for Q4 rose to 16.2%, driven by cost optimization

Company launched EUR 150 mln share buyback programme linked to divestment

Outlook

Tieto expects 2026 organic growth between -2% and 0%

Company estimates full-year adjusted operating margin at 14.8–15.8%

Tieto sees growth headwinds impacting overall Group growth by 3 percentage points in 2026

Result Drivers

MARKET WEAKNESS - Revenue decline attributed to market weakness and challenges in Tieto Banktech and Caretech divisions

COST OPTIMIZATION - Adjusted operating margin increased due to cost optimization program ahead of schedule

STRATEGIC CHANGES - Acquisitions in Spain and divestment of Bekk Consulting support European expansion and simplification

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
EUR 464.20 mln
Q4 EBIT
EUR 58.80 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 7 "hold" and 4 "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 Tietoevry Oyj is €18.00, about 8% above its February 11 closing price of €16.67

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nWkr12BqhJ

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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.)