Nagarro (NA9) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue grew 6.5% YoY in constant currency to €248 million, with over 6% growth in line with guidance and 0.5% YoY growth in Euro terms.

• Continued transition to AI transformation leadership, supported by four acquisitions in 2025, including Charles Hudson and Inaho, and strengthened partnerships with major technology providers.

• Appointed first-ever CFO, Prateek Aggarwal, and expanded board to enhance financial management and governance.

• Maintained strong client satisfaction (CSAT 92.7%, NPS 65) and stable customer base, with accounts over €1 million declining to 179 due to project completions.

• Number of professionals increased to 18,543 globally as of March 31, 2026.

Financial highlights

• Q1 2026 gross margin was 31.2%, up 0.6pp YoY; adjusted EBITDA margin was 12.6%, improved YoY but below full-year target.

• Net profit increased by €7.9 million to €19.2 million YoY; basic EPS rose to €1.55.

• Net financial liabilities at March 31, 2026, were €267.5 million; net leverage ratio at 1.9x, though some sources report improvement to 1.3x.

• Cash balance stood at €112.6–113 million; working capital at €232.7 million.

• Q1 2026 total cash outflow was €13.5 million, improved from €23.6 million outflow in Q1 2025.

Outlook and guidance

• Full-year 2026 revenue guidance set at €1,000–1,060 million, with expectations to meet guidance and benefit from more working days in Q2 and Q3.

• Adjusted EBITDA margin guidance for 2026 is 14.5–15.5%; adjusted EBITDA, excluding €15.5 million unrealized Forex impact, would be about €153.7 million.

• Top 5 client revenue expected to comprise 16% of total.

• CSAT and NPS scores expected to remain stable at 92% and 65, respectively.