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Kainos lifts revenue outlook on strong growth and record backlog

Story Highlights
  • Kainos expects revenue ahead of consensus and steady profit, driven by double-digit growth, record backlog and a 21% workforce expansion that temporarily pressures margins but signals strong demand.
  • Workday Products ARR has surpassed £89m, with Kainos targeting £100m in 2026 and £200m by 2030, as strong product uptake and global growth in Digital Services and Workday Services underpin confidence in long-term expansion.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Kainos lifts revenue outlook on strong growth and record backlog

Meet Samuel – Your Personal Investing Prophet

The latest announcement is out from Kainos Group plc ( (GB:KNOS) ).

Kainos Group plc reported that revenue for the year to 31 March 2026 is expected to come in ahead of market consensus, with adjusted profit before tax broadly in line, underpinned by double-digit revenue growth, strong sales and record backlog. The company expanded its workforce by 21% to 3,475, including increased use of contractors to meet demand, which has temporarily pressured margins but reflects confidence in its robust order pipeline and market opportunities.

The Workday Products division grew annual recurring revenue to over £89m and remains on track for £100m ARR in 2026 and £200m by 2030, supported by strong uptake of its new Pay Transparency solution, while Digital Services secured major UK healthcare and public sector contracts and Workday Services returned to growth, particularly in the Americas and APAC. Management highlighted a strong, debt-free balance sheet, solid pipeline and favourable structural trends in digital transformation and Workday ecosystems as the basis for sustained growth, with margin improvement expected from FY27 as reliance on contractors eases despite a volatile macroeconomic backdrop.

The most recent analyst rating on (GB:KNOS) stock is a Buy with a £1150.00 price target. To see the full list of analyst forecasts on Kainos Group plc stock, see the GB:KNOS Stock Forecast page.

Spark’s Take on KNOS Stock

According to Spark, TipRanks’ AI Analyst, KNOS is a Neutral.

The score is primarily supported by strong financial fundamentals (profitability and a robust, low-leverage balance sheet). This is materially offset by weak technicals (price below key moving averages and negative MACD), while valuation is mixed with a high P/E partly balanced by a solid dividend yield.

To see Spark’s full report on KNOS stock, click here.

More about Kainos Group plc

Kainos Group plc is a UK-headquartered IT services and software company listed on the London Stock Exchange, serving major public sector, commercial and healthcare clients. It operates through three divisions—Digital Services, Workday Services and Workday Products—delivering custom digital platforms, Workday implementation and support, and proprietary add-on products to over 600 global customers.

Average Trading Volume: 500,756

Technical Sentiment Signal: Buy

Current Market Cap: £969.2M

See more insights into KNOS stock on TipRanks’ Stock Analysis page.

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