GET DAILY SIGNALSEndava (DAVA) Q4 FY2026 Earnings: AI Revenue Growth in Focus
Key Takeaways
- Endava is scheduled to report results for its fourth quarter of fiscal 2026 (the three months ended June 30, 2026) in early November 2026.
- Wall Street consensus points to revenue near £182 million and adjusted diluted EPS (earnings per share) near £0.10 for the quarter.
- Management's own guidance calls for Q4 FY2026 revenue of £181 million to £185 million and adjusted diluted EPS of £0.09 to £0.13.
- In the prior quarter (Q3 FY2026), revenue fell 8.4% year over year and adjusted diluted EPS of £0.05 missed consensus estimates.
- AI-driven business has climbed to roughly 15% of total revenue, up from 5% a year earlier, and will be a focal point of the report.
- The full-year outlook implies a constant-currency revenue decline of approximately 5% to 6% for fiscal 2026.
- For additional detail on Endava's Major News, Today's Price Move, Price Targets, and Forecast, explore these dedicated pages.
- Investors seeking automated trading ideas can also explore Trending AI Robots.
Why This Earnings Report Matters
Endava (DAVA) is a London-headquartered, next-generation technology services company that helps clients across payments, financial services, healthcare, and other sectors accelerate digital transformation. The upcoming Q4 FY2026 report matters because it closes a difficult fiscal year in which revenue has declined and profitability has compressed amid uneven client demand and extended deal cycles. I am watching closely to see whether the company's AI-native pivot can begin to stabilize results, and whether management's guidance holds after several downward revisions. Because Endava reports in British pounds, currency movements can also affect headline comparisons against the U.S. dollar. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Earnings Expectations
For Q4 FY2026, analyst consensus estimates revenue of roughly £182 million and adjusted diluted EPS near £0.10 per share. These figures sit near the midpoint of the company's own guidance, which projects revenue of £181 million to £185 million, representing a constant-currency decline of 3.5% to 1.0% year over year, and adjusted diluted EPS of £0.09 to £0.13. For the full fiscal year 2026, Endava has guided revenue of £721.8 million to £725.8 million and adjusted diluted EPS of £0.45 to £0.49.
Consensus expectations reflect a cautious backdrop: in Q3 FY2026, revenue of £178.5 million fell 8.4% year over year, and adjusted diluted EPS of £0.05 missed estimates by a wide margin as the company recognized a £364.6 million non-cash goodwill impairment. Following that report, the stock fell sharply, underscoring how sensitive the shares have become to both top-line trends and one-off charges.
Market Reaction and Investor Sentiment
Sentiment heading into the Q4 FY2026 report remains cautious. Endava's shares sold off following the Q3 FY2026 release in May, when revenue missed expectations, margins contracted, and a substantial non-cash goodwill impairment weighed on reported results. Since then, investors have focused on whether client spending stabilizes and whether the company's accelerating AI-driven revenue can translate into sustained profitability. Key risks include further weakness in discretionary technology budgets, extended sales cycles, and the potential for additional charges tied to a reset of forward performance expectations.
Forward Outlook and Key Factors to Monitor
Looking beyond the quarter, investors should watch several indicators that will shape Endava's trajectory. First, the durability of the AI-native pivot is central: AI-driven business has grown to roughly 15% of total revenue from 5% a year earlier, and management has pointed to higher margins on that work. Whether this mix shift continues to scale will be a key driver of any recovery.
Second, demand signals matter. Client concentration remains elevated, with the top 10 clients contributing about 40% of revenue, so the pace of deal closures and any change in spending patterns among large accounts will be closely scrutinized. Margin and cost trends, including utilization rates and headcount management, will also indicate how efficiently Endava is adapting to a softer revenue environment.
Finally, guidance will set the tone. Investors will compare management's fiscal 2027 commentary and any updated full-year outlook against consensus, and will assess whether the company's balance sheet, including cash and available borrowings, provides enough flexibility to navigate a prolonged slowdown. As always, results should be evaluated in the context of reported figures and clearly identified estimates rather than speculation. From what I see, the AI component remains the most important variable to track.
Using Tickeron’s AI Tools in Research
I have found Tickeron's AI Screener helpful when evaluating stocks in the technology services sector. It lets me apply filters for technical patterns, fundamentals, and AI-driven signals to surface relevant ideas more efficiently than manual reviews. This approach has supported my ongoing monitoring of names like Endava by highlighting comparable setups and trends.
Disclaimer
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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 Indicator enters downward trend
The Aroon Indicator for DAVA entered a downward trend on October 08, 2026. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 323 similar instances where the Aroon Indicator formed such a pattern. In 289 of the 323 cases the stock moved lower. This puts the odds of a downward move at 89%.
Technical Analysis (Indicators)
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 67 of 75 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 89%.
The Moving Average Convergence Divergence Histogram (MACD) for DAVA turned negative on October 29, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In 37 of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at 84%.
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%.
Bullish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
Following a +5.24% 3-day Advance, the price is estimated to grow further. Considering data from situations where DAVA advanced for three days, in 192 of 265 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.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 36 (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 (0.477) is normal, around the industry mean (16.752). P/E Ratio (-0.201) is within average values for comparable stocks, (58.881). Projected Growth (PEG Ratio) (0.266) is also within normal values, averaging (3.648). Dividend Yield (0.000) settles around the average of (0.269) 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 88 (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 97 (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 91, placing this stock worse than average.
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a provider of information technology services
Industry ComputerCommunications
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