Tieto Boosts Profitability and Accelerates AI-Led Transformation Despite Weak Consulting Market

TietoEVRY ( (GB:0KG0) ) has shared an update.

Tieto reported first-quarter 2026 revenue of EUR 448.3 million, down 3% organically, but boosted profitability with adjusted EBITA margin rising to 14.7% from 10.6% on the back of cost-optimization and strong software margins. Despite persistent weakness in its consulting business and the phase-out of legacy contracts in Banktech and Caretech, the company kept its full-year outlook for flat to slightly negative organic growth and a higher adjusted EBITA margin target.

The group is accelerating a strategic transformation focused on AI, partnerships and portfolio reshaping, including a large-scale AI upskilling programme for 5,000 consultants and a broad strategic partnership with Microsoft to embed AI across offerings. Recent acquisitions in Iberia, divestments of non-core units and a new framework agreement with Orange Business aim to sharpen Tieto’s European footprint, improve delivery efficiency and reposition Tieto Tech Consulting with new leadership and cost-saving measures amid challenging market conditions.

The most recent analyst rating on (GB:0KG0) stock is a Hold with a EUR18.00 price target. To see the full list of analyst forecasts on TietoEVRY stock, see the GB:0KG0 Stock Forecast page.

More about TietoEVRY

Tieto is a leading software and digital engineering services company providing mission-critical solutions through its Tieto Caretech, Tieto Banktech, Tieto Indtech and Tieto Tech Consulting units. With about 14,000 experts in vertical software, design, cloud and AI, it serves diverse industries globally and generates roughly EUR 2 billion in annual revenue, with shares listed in Helsinki, Stockholm and Oslo.

Average Trading Volume: 408,556

Current Market Cap: €2.16B

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