Wavestone (WAVE) H2 2026 earnings summary

Executive summary

• Revenue for FY 2025/26 reached €954.3m, up 1% year-over-year, with 6,111 employees and operations focused in France, GSA, and US/UK.

• Net income increased by 8% to €82.1m, with a net margin of 8.6% and EPS up 8% to €3.34.

• AI-related activities surged, now representing 17% of revenue, doubling from 8% last year, with a target of 25% for 2026/27.

• CSR objectives were achieved or exceeded, with notable progress in employee engagement, diversity, and carbon footprint reduction; strong ESG scores and improved client satisfaction.

• Staff turnover held steady at 12%, with total headcount reaching 6,111 after 900 gross hires.

Financial highlights

• Recurring operating margin held steady at 12.6%, with recurring operating profit at €119.9m, up 1% year-over-year.

• Free cash flow rose to €118.9m from €63.2m, and net cash position improved to €121.4m from €25.6m.

• Dividend proposed at €0.50 per share, up 9%, representing 15% of group share net income.

• Share price up 10% in 2025 but down 15% YTD in 2026.

• Equity increased to €702.5m from €633.4m.

Outlook and guidance

• 2026/27 targets low single-digit organic revenue growth and recurring operating margin around 13%.

• 15% margin target for FY 2027/28 withdrawn due to slower market recovery and delays in performance improvement.

• Strategic plan aims for €1.4bn revenue and 14–16% margin by 2030, with €100m OPEX for AI and up to €800m CAPEX for external growth.