Wavestone (WAVE) Q1 2027 TU earnings summary

Executive summary

• Q1 2026/27 revenue declined by 2% year-over-year to €227.0m, reflecting a challenging start to the fiscal year.

• Market weakness and a rapid client shift toward AI projects impacted overall business, with AI-related revenue rising to 22% of Q1 total, up from 17% in FY 2025/26.

• The acquisition of AI Builders, a French AI & data consulting firm, was completed to accelerate AI transformation.

Financial highlights

• Q1 2026/27 revenue: €227.0m, down 2% year-over-year on both reported and organic basis.

• Consultant utilization rate was 71% in Q1 2026/27, down from 72% in FY 2025/26.

• Average daily rate decreased by 1.3% to €926 compared to €938 in the previous fiscal year.

• Order book increased to 4.5 months as of June 30, 2026.

• Staff count stable at 6,122; turnover rate stable at 12% on a rolling 12-month basis.

Outlook and guidance

• 2026/27 organic revenue growth target revised to -1% to low single-digit growth.

• Recurring operating margin guidance adjusted to 11%-13% from around 13%.

• Strategic focus on accelerating AI transformation, operational efficiency, and execution.