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Shearwater lifts revenue 31% on services growth and major contract wins

Story Highlights
  • Shearwater delivered 31% interim revenue growth, driven by services and cost efficiencies.
  • Major blue-chip contract wins and a strong pipeline underpin confidence in full-year targets.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Shearwater lifts revenue 31% on services growth and major contract wins

Meet Samuel – Your Personal Investing Prophet

Shearwater ( (GB:SWG) ) just unveiled an update.

Shearwater Group reported a 31% rise in interim revenue to £14.0m for the six months to 31 December 2025, driven largely by 37% growth in its Services business, which now contributes 92% of total sales. Adjusted EBITDA was flat at breakeven, but administrative expenses fell 6% as prior-year restructuring and cost-reduction measures took effect, while cash was temporarily lower at £2.2m due to project timing.

Operationally, the group secured material contract wins and extensions with major telecoms, financial institutions and UK government departments, including a £7.3m mobile operator extension and a post-period £9m renewal with a global bank. With a new chair in place, a strong sales pipeline, and margin improvement expected from new solutions in the seasonally stronger second half, the board reiterated confidence in meeting full-year market expectations amid robust growth in the wider cybersecurity market.

The most recent analyst rating on (GB:SWG) stock is a Hold with a £43.00 price target. To see the full list of analyst forecasts on Shearwater stock, see the GB:SWG Stock Forecast page.

Spark’s Take on SWG Stock

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

The score is driven primarily by weak financial quality—loss-making operations and declining/free cash flow despite strong revenue growth—partly offset by supportive short-term technical momentum (price above 20/50 DMA and positive MACD). Valuation is also constrained by the loss-driven negative P/E and no dividend yield data.

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

More about Shearwater

Shearwater Group plc is a UK-headquartered cybersecurity specialist providing cyber security, managed security and professional advisory services to organisations worldwide. Its full-service offering spans identity and access management, data security, cybersecurity solutions, managed security services and security governance, risk and compliance, with a focus on blue-chip and highly regulated sectors.

Average Trading Volume: 46,560

Technical Sentiment Signal: Sell

Current Market Cap: £10.01M

For detailed information about SWG stock, go to TipRanks’ Stock Analysis page.

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