GET DAILY SIGNALSEndava (DAVA) Earnings Delay: Guidance, Accounting Review, and the AI Shift
Key Takeaways
- Endava's fiscal fourth-quarter and full-year 2026 results were delayed past the usual schedule and were targeted for release by November 2, 2026, following an accounting review.
- Management's May 2026 guidance calls for Q4 FY2026 revenue of £181.0 million to £185.0 million and adjusted diluted EPS of £0.09 to £0.13.
- For the full fiscal year 2026, Endava guided to revenue of £721.8 million to £725.8 million and adjusted diluted earnings per share (EPS) of £0.45 to £0.49.
- In Q3 FY2026, revenue fell 8.4% year over year to £178.5 million, while adjusted diluted EPS dropped to £0.05 from £0.34 a year earlier.
- A board investigation into the accounting treatment of certain customer and supplier agreements led to the chief financial officer being placed on administrative leave, adding uncertainty to the report.
- Endava's AI-driven business rose to 15% of total revenue from 5% a year earlier, a theme investors will track closely.
Why This Release Matters Now
Endava's upcoming quarterly earnings arrive at a delicate moment. The technology services firm, which reports in British pounds sterling (GBP), has seen demand soften as clients scrutinize spending and lengthen deal cycles, while a pivot toward AI-native delivery is still building momentum. The report was pushed past its normal timetable after outside auditors raised concerns about the accounting treatment of certain customer and supplier agreements, triggering an independent investigation and the appointment of an interim CFO. For investors, this update matters for two reasons: it should clarify whether the revenue decline is stabilizing, and it offers the first look at how the accounting review may affect previously issued guidance and financial statements.
Guidance and What Analysts Expect
For the fiscal fourth quarter ended June 30, 2026, Endava previously guided to revenue between £181.0 million and £185.0 million, implying a constant-currency revenue decline of 3.5% to 1.0% year over year, along with adjusted diluted EPS of £0.09 to £0.13. Full-year 2026 guidance calls for revenue of £721.8 million to £725.8 million and adjusted diluted EPS of £0.45 to £0.49. Analysts generally expect results near the lower end of these ranges, reflecting the demand pressures that drove Q3 FY2026 revenue down 8.4% to £178.5 million and adjusted diluted EPS to just £0.05. Given the accounting investigation, investors will also watch whether the company adjusts any prior figures or guidance. I also checked this using Tickeron’s AI Screener to see how Endava (DAVA) compares to others in the industry.
Market Sentiment Heading Into the Release
Sentiment heading into this release is cautious. Endava's shares have come under sustained pressure as revenue has declined and profitability has narrowed, and the delay of the fiscal 2026 results—coupled with the CFO's administrative leave—has amplified uncertainty. The accounting investigation is the central risk factor: until its scope and conclusions are clear, investors are likely to discount the stock. The AI-driven revenue ramp, which climbed from 5% to 15% of total revenue year over year, is the key offsetting narrative, though these larger, outcome-based contracts are taking longer to close. The market's reaction will hinge on whether results land within guidance and whether management offers any update on the investigation.
What to Watch After the Report
After this report, investors should watch several factors. First, any update on the accounting investigation and the timeline for filing the delayed Annual Report on Form 20-F will be critical, since unresolved questions around financial reporting can weigh on the stock regardless of operating performance.
Second, revenue trajectory matters. The company has guided to a narrower constant-currency decline in the fourth quarter than in the third, and confirmation of that stabilization would be a meaningful signal that demand is bottoming.
Third, the AI transition is central to the long-term story. Growth in the AI-driven business, progress on partnerships with hyperscalers and companies such as Mastercard, and the pace of converting pipeline into outcome-based contracts will indicate whether the strategic pivot is gaining traction.
Finally, cost and balance-sheet discipline remain in focus, including adjusted free cash flow, leverage levels, and any commentary on refinancing plans. Each of these factors will shape how investors reassess Endava's path after a difficult year. From what I see, the AI revenue share is one area worth monitoring particularly closely in the quarters ahead.
How I Use AI Tools for This Type of Analysis
When preparing for earnings like these, I find Tickeron’s AI Screener helpful for quickly filtering peers and spotting technical or fundamental patterns that might otherwise take hours to review manually. It lets me scan across industries and metrics to put Endava (DAVA)’s situation in broader context before the numbers drop.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
DAVA's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for DAVA turned positive on November 09, 2026. Looking at past instances where DAVA's MACD turned positive, the stock continued to rise in 35 of 44 cases over the following month. The odds of a continued upward trend are 80%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where DAVA's RSI Indicator exited the oversold zone, 43 of 57 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 75%.
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 46 of 63 cases where DAVA's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 73%.
Following a +8.23% 3-day Advance, the price is estimated to grow further. Considering data from situations where DAVA advanced for three days, in 189 of 261 cases, the price rose further within the following month. The odds of a continued upward trend are 72%.
DAVA may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 27, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on DAVA as a result. In 59 of 73 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 81%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where DAVA declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 86%.
The Aroon Indicator for DAVA entered a downward trend on October 08, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 37 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.536) is normal, around the industry mean (16.272). P/E Ratio (-0.226) is within average values for comparable stocks, (52.956). Projected Growth (PEG Ratio) (0.266) is also within normal values, averaging (3.648). Dividend Yield (0.000) settles around the average of (0.430) among similar stocks. P/S Ratio (0.159) is also within normal values, averaging (103.889).
The Tickeron Seasonality Score of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 84 (best 1 - 100 worst), indicating slightly worse than average price growth. DAVA’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 98 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 99 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. DAVA’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 92, placing this stock worse than average.
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General Information
a provider of information technology services
Industry ComputerCommunications
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