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An announcement from Endava ( (DAVA) ) is now available.
Endava on February 19, 2026 reported second-quarter fiscal 2026 results for the three months ended December 31, 2025, showing revenue of £184.1 million, down 5.9% year on year and 5.1% at constant currency, but up 3.3% sequentially from Q1. The company swung to a £7.2 million pre-tax loss and a £6.9 million net loss, with diluted EPS at £(0.13) versus £0.11 a year earlier, while adjusted diluted EPS fell to £0.16 from £0.30.
Management attributed recent performance to heavy investment in an AI pivot, including recruitment and training of “NextGen” talent, building an AI-native engagement model through its Dava.Flow platform, and expanding its partner ecosystem. Despite softer top-line and margin pressure, Endava generated £28.2 million of operating cash flow and £20.1 million of adjusted free cash flow, ended the quarter with £68.5 million in cash, and continued returning capital with $121.9 million of share repurchases completed by January 31, 2026, leaving $28.1 million authorized.
Operationally, headcount edged down to 11,385, large-client count slipped to 135 accounts above £1 million, and revenue remained diversified with 40% from North America, 31% from the UK and 23% from Europe. By industry, payments, banking and capital markets, and TMT continued to dominate the mix, and a new mandate to design a cloud-native cross-border payment switch for a PayNet-NETS joint venture highlighted Endava’s depth in the payments vertical and its strategy to build AI-enabled capabilities in high-value financial infrastructure work.
The most recent analyst rating on (DAVA) stock is a Hold with a $5.50 price target. To see the full list of analyst forecasts on Endava stock, see the DAVA Stock Forecast page.
Spark’s Take on DAVA Stock
According to Spark, TipRanks’ AI Analyst, DAVA is a Neutral.
Endava’s overall stock score reflects a stable financial position with strong cash flow generation but is weighed down by bearish technical indicators and high valuation concerns. The earnings call further highlights short-term challenges with declining revenues and profitability, despite strategic advancements in AI and partnerships. The stock’s current valuation may not be justified given these financial pressures.
To see Spark’s full report on DAVA stock, click here.
More about Endava
Endava plc is a London-headquartered provider of next-generation technology services, focusing on AI-native digital transformation for clients across payments, insurance, banking and capital markets, technology, media, telecommunications, healthcare, mobility, retail and consumer goods. As of December 31, 2025, the company employed 11,385 staff across Europe, the Americas, Asia Pacific and the Middle East, delivering tailor-made solutions from consulting and ideation through to production.
The group positions itself as a technology-driven business transformation partner, combining innovative technologies with deep sector expertise to help clients accelerate growth and tackle complex challenges. Its client base is globally diversified, with revenue weighted toward North America, the United Kingdom and Europe, and concentrated in verticals such as payments, banking and capital markets, and technology, media and telecommunications.
Average Trading Volume: 731,875
Technical Sentiment Signal: Sell
Current Market Cap: $286.1M
Learn more about DAVA stock on TipRanks’ Stock Analysis page.