Endava released FY2025 Annual Earnings on September 4 Pre-Market (EST), actual revenue USD 1.016 B (forecast USD 1.058 B), actual EPS USD 0.4734 (forecast USD 0.5264)

Brief Summary

Endava’s fiscal year 2025 financial report, released on September 4, showed a revenue of $1.016 billion, missing the expected $1.058 billion, and an EPS of $0.4734, also below the forecasted $0.5264.

Impact of The News

1. Performance Overview:

• Endava’s reported revenue and EPS both fell short of market expectations for the fiscal year 2025.
• The company experienced a year-over-year revenue decline of 3.9% for the fourth quarter, amounting to £186.8 million, compared to £194.4 million the previous yearReuters+ 2.
• The reported EPS for the fourth quarter was £0.24, slightly above the analyst consensus of £0.23MSN.

2. Market Reaction and Positioning:

• The missed revenue and EPS expectations led to a notable negative market reaction, with Endava’s shares dropping more than 20% in premarket tradingMSN.
• In contrast, Endava achieved a revenue growth of 4.3% for the entire fiscal year 2025, reaching £772.3 millionReuters.

3. Peer Performance Comparison:

• Comparatively, other companies like Broadcom have been reporting strong financial performance, with significant revenue growth and EPS exceeding expectations, which highlights the competitive pressure on Endava.

4. Future Business Outlook:

• The poor performance in Q4 and the lowered guidance for fiscal 2026 suggest potential challenges in maintaining growth and meeting market expectations in the near termMSN.
• The market reaction indicates investor concerns about Endava’s ability to navigate these challenges and improve its financial performance going forward.