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 client satisfaction metrics, including an NPS of 70 and CSAT of 93.2%, and received multiple industry recognitions.

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

• Demonstrated operational resilience and workforce growth, with 18,711 professionals as of June 30, 2026.

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 revenue was EUR 252 million, up 2% in constant currency.

• Gross margin exceeded 32% in Q2 2026; adjusted EBITDA margin reached 15.0%, with adjusted EBITDA at EUR 69.1 million for H1 2026.

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

• Cash balance at June 30, 2026, was EUR 131.3 million; net leverage ratio improved to 1.7x.

• 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.

• Margin improvement initiatives underway, with results expected by Q4; expectations from Annual Report 2025 maintained.

• No significant business changes after June 30, 2026.