Nagarro (NA9) Q2 2026 earnings summary

Executive summary

• Entered a business combination agreement with Persistent Systems to form a global AI-led digital engineering group, with a public takeover offer at EUR 81 per share, supported by management and supervisory boards.

• Achieved record-high customer satisfaction metrics, including an NPS of 70 and CSAT of 93.2%, and received industry recognition as a global leader in customer satisfaction and delivery execution.

• Secured several new high-profile clients across diverse industries and geographies.

• Workforce grew to 18,711 professionals, with 17,037 in engineering roles as of June 30, 2026.

• Demonstrated operational resilience and moderate growth despite a challenging macroeconomic environment and subdued IT services demand.

Financial highlights

• H1 2026 revenue reached EUR 501 million, up 4.2% year-over-year in constant currency and 0.3% in Euro terms; Q2 2026 revenue was EUR 252 million, up 2% year-over-year in constant currency.

• Gross margin exceeded 32% in Q2 2026, with H1 2026 gross profit at EUR 159.2 million and gross margin at 31.8%.

• Adjusted EBITDA margin reached 15.0% in Q2 2026, with H1 2026 adjusted EBITDA at EUR 69.1 million (13.8% of revenue).

• Net profit increased by EUR 10.2 million to EUR 29.8 million in H1 2026, with basic and diluted EPS at EUR 2.41.

• Operating cash flow for H1 2026 was EUR 29.5 million, down from EUR 42.4 million in H1 2025.

Outlook and guidance

• Management expects temporary revenue declines in Germany and Austria to reverse in coming quarters, with stable pipeline and strong performance in management consulting and manufacturing segments.

• Margin improvement initiatives underway, with results expected by Q4.

• Maintains expectations expressed in the Annual Report 2025, with no significant business changes after June 30, 2026.