Kainos Group (KNOS) H2 2026 earnings summary

Executive summary

• Achieved record revenue of £431 million for FY26, up 17% year-over-year, with strong sales and growth across all divisions and international markets.

• Bookings rose 32% to £505 million, with contracted backlog increasing 18% to £434 million, supporting future revenue visibility.

• Added over 150 new clients and increased revenue from existing clients by over GBP 70 million year-over-year.

• International expansion continues, with North America now representing a third of total revenues and international revenue at 41% of total.

• Workforce grew by 21%, with significant contractor use to meet demand and improved gender diversity to 37% female staff.

Financial highlights

• Revenue rose to £431.1 million (+17%), with adjusted pre-tax profit of £67.1 million (+2%) and profit after tax of £42.5 million (+19%).

• Sales bookings up 32% to £505 million, a record level, and backlog exceeding £430 million.

• ARR grew 23% to £89 million; cash reserves at £89.1 million; cash conversion at 99%.

• Adjusted profit before tax margin declined to 16% (from 18%) due to increased contractor and bonus costs.

• Dividend per share up to 29.6p; share buyback of £55.7 million completed.

Outlook and guidance

• Confident outlook for Fiscal 2027, supported by record bookings, strong backlog, and ARR scaling.

• On track to achieve £100 million ARR target by end of year, aiming for £200 million by 2030.

• Expect reduction in contractor mix as permanent hiring increases.

• Continued focus on international growth, AI adoption, and expanding product mix.

• Continued progress expected in Workday Services and new product launches.