Endava (NYSE:DAVA) Issues Earnings Results

Endava (NYSE:DAVA) released its earnings results on Thursday. The company reported $0.07 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.27 by ($0.20), FiscalAI reports. The business had revenue of $236.44 million for the quarter, compared to analyst estimates of $242.79 million. Endava had a positive return on equity of 2.14% and a negative net margin of 57.01%. Endava updated its Q4 2026 guidance to 0.120-0.180 EPS and its FY 2026 guidance to 0.610-0.660 EPS.

Here are the key takeaways from Endava’s conference call:

• Q3 revenue missed expectations at £178.5 million, down 8.4% year over year, as pipeline conversion slowed and some work slipped beyond March.
• The company cut its Q4 and full-year FY2026 guidance, citing delayed Middle East projects, softer macro demand, and slower execution on large outcome-based contracts.
• Endava booked a £364.6 million non-cash goodwill impairment and a £23.2 million deferred tax asset write-off, driving a £372 million pre-tax loss for the quarter.
• Management said its AI-driven business grew to 15% of revenue from 5% a year ago, and 12 clients now use Dava.Flow versus 3 last quarter, supporting a higher-margin mix shift.
• The company highlighted new partnerships and wins, including Mastercard, Google Cloud, and NatWest’s Tyl, as evidence that clients are moving from AI pilots to production-grade, outcome-based programs.

Endava Trading Down 0.1%

NYSE DAVA opened at $3.34 on Friday. The company has a debt-to-equity ratio of 0.36, a current ratio of 2.39 and a quick ratio of 2.39. The firm’s fifty day moving average price is $4.33 and its 200 day moving average price is $5.62. The company has a market capitalization of $187.46 million, a price-to-earnings ratio of -0.32 and a beta of 1.11. Endava has a 12 month low of $3.20 and a 12 month high of $17.36.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of DAVA. Jane Street Group LLC lifted its stake in shares of Endava by 16.1% in the first quarter. Jane Street Group LLC now owns 10,682 shares of the company’s stock valued at $208,000 after purchasing an additional 1,482 shares during the period. EverSource Wealth Advisors LLC lifted its stake in shares of Endava by 733.6% in the second quarter. EverSource Wealth Advisors LLC now owns 1,909 shares of the company’s stock valued at $29,000 after purchasing an additional 1,680 shares during the period. Advisory Services Network LLC acquired a new stake in shares of Endava in the third quarter valued at about $28,000. State Street Corp lifted its stake in shares of Endava by 3.4% in the fourth quarter. State Street Corp now owns 98,936 shares of the company’s stock valued at $625,000 after purchasing an additional 3,218 shares during the period. Finally, Millennium Management LLC lifted its stake in shares of Endava by 4.8% in the fourth quarter. Millennium Management LLC now owns 95,634 shares of the company’s stock valued at $604,000 after purchasing an additional 4,342 shares during the period. 62.23% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

DAVA has been the topic of a number of research reports. Wall Street Zen upgraded shares of Endava from a “sell” rating to a “hold” rating in a report on Sunday, February 8th. CLSA set a $5.00 target price on shares of Endava in a report on Friday. TD Cowen reiterated a “buy” rating on shares of Endava in a report on Friday. Weiss Ratings reiterated a “sell (d)” rating on shares of Endava in a report on Tuesday, April 7th. Finally, Morgan Stanley reduced their target price on shares of Endava from $8.00 to $4.00 and set an “equal weight” rating on the stock in a report on Friday. Two research analysts have rated the stock with a Buy rating, four have given a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Reduce” and a consensus target price of $7.14.

Trending Headlines about Endava

Here are the key news stories impacting Endava this week:

• Positive Sentiment: Needham & Company trimmed its price target but kept a buy rating, suggesting some analysts still see rebound potential for Endava despite the weak quarter.
• Neutral Sentiment: TD Cowen lowered its target to $4.00 and maintained a hold view, reflecting a more cautious but not outright bearish stance on the name.
• Neutral Sentiment: Morgan Stanley cut its target to $4.00 and kept an equal weight rating, indicating the firm sees limited near-term upside but not a dramatic deterioration beyond current expectations.
• Neutral Sentiment: JPMorgan reaffirmed an underweight rating while reducing its target, underscoring that sentiment on the stock remains subdued after the earnings update.
• Negative Sentiment: Endava reported fiscal Q3 EPS of $0.07 versus the $0.27 consensus and revenue of $236.4 million versus $242.8 million expected, then cut FY26 EPS and revenue guidance below estimates. Endava Announces Third Quarter Fiscal Year 2026 Results
• Negative Sentiment: Johnson Fistel said it is investigating potential securities-law violations tied to investor losses, adding a legal-overhang headline that may further weigh on shares. Endava plc Shareholders Are Encouraged to Reach Out to Johnson Fistel for More Information about Potentially Recovering Their Losses

About Endava

Endava PLC is a publicly traded technology services company specializing in digital transformation and agile software development. The firm helps enterprise clients design, build and manage custom software solutions across industries such as financial services, payments, retail, telecommunications and media. Its service offerings span end-to-end product design, customer experience, application development, quality engineering, DevOps, automation and artificial intelligence, all delivered through agile methodologies.

Founded in 2000, Endava has grown from a small software provider into a global IT partner.