DAVA

Taboola.com Ltd. (TBLA) came out with quarterly earnings of $0.14 per share, beating the Zacks Consensus Estimate of $0.13 per share. This compares to earnings of $0.1 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +7.69%. A quarter ago, it was expected that this company would post a loss of $0.01 per share when it actually produced a loss of $0.01, delivering no surprise. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Taboola.com, which belongs to the Zacks Computers - IT Services industry, posted revenues of $476.83 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 4.71%. This compares to year-ago revenues of $465.47 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Taboola.com shares have added about 14.8% since the beginning of the year versus the S&P 500's gain of 13%. While Taboola.com has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Taboola.com was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.15 on $525.9 million in revenues for the coming quarter and $0.59 on $2.04 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computers - IT Services is currently in the bottom 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Endava PLC Sponsored ADR (DAVA), another stock in the same industry, has yet to report results for the quarter ended June 2026. This company is expected to post quarterly earnings of $0.15 per share in its upcoming report, which represents a year-over-year change of -51.6%. The consensus EPS estimate for the quarter has been revised 6.3% lower over the last 30 days to the current level. Endava PLC Sponsored ADR's revenues are expected to be $244.74 million, up 2.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Taboola.com Ltd. (TBLA) : Free Stock Analysis Report Endava PLC Sponsored ADR (DAVA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Endava PLC Sponsored ADR (DAVA) came out with quarterly earnings of $0.07 per share, missing the Zacks Consensus Estimate of $0.27 per share. This compares to earnings of $0.43 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -74.27%. A quarter ago, it was expected that this company would post earnings of $0.21 per share when it actually produced earnings of $0.21, delivering no surprise. Over the last four quarters, the company has not been able to surpass consensus EPS estimates. Endava, which belongs to the Zacks Computers - IT Services industry, posted revenues of $240.59 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 3.64%. This compares to year-ago revenues of $245.33 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Endava shares have lost about 36.7% since the beginning of the year versus the S&P 500's gain of 8.6%. While Endava has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Endava was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.38 on $259.82 million in revenues for the coming quarter and $1.09 on $996.73 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computers - IT Services is currently in the bottom 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Nutanix (NTNX), is yet to report results for the quarter ended April 2026. The results are expected to be released on May 27. This enterprise cloud platform services provider is expected to post quarterly earnings of $0.35 per share in its upcoming report, which represents a year-over-year change of -16.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Nutanix's revenues are expected to be $686.02 million, up 7.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Endava PLC Sponsored ADR (DAVA) : Free Stock Analysis Report Nutanix (NTNX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Revenue: GBP178.5 million for the quarter ended March 31, 2026, an 8.4% decrease from GBP194.8 million in the same period last year. Constant Currency Revenue Decrease: 6.4% from the same period in the prior year. Loss Before Tax: GBP372 million, including a non-cash goodwill impairment of GBP364.6 million. Adjusted Profit Before Tax (PBT): GBP3.2 million, compared to GBP24.6 million in the prior year. Adjusted PBT Margin: 1.8% compared to 12.6% in the prior year. Adjusted Diluted Earnings Per Share (EPS): 5p, compared to 34p in the prior year. Adjusted Free Cash Flow: Negative GBP3.1 million, compared to positive GBP17.5 million in the prior year. Cash and Cash Equivalents: GBP48.4 million at March 31, 2026. Borrowings: GBP195.8 million at March 31, 2026. Capital Expenditure: 1.6% of revenue, compared to 0.6% in the prior year. Revenue Guidance for Q4 FY 2026: GBP181 million to GBP185 million, a constant currency revenue decrease of 3.5% to 1.0% year-over-year. Adjusted Diluted EPS Guidance for Q4 FY 2026: 9p to 13p per share. Full Fiscal Year 2026 Revenue Guidance: GBP721.8 million to GBP725.8 million, a constant currency revenue decrease of 60% to 5.0% year-over-year. Full Fiscal Year 2026 Adjusted Diluted EPS Guidance: 45p to 49p per share. Warning! GuruFocus has detected 8 Warning Signs with DAVA. Is DAVA fairly valued? Test your thesis with our free DCF calculator. Release Date: May 21, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Endava PLC (NYSE:DAVA) has accelerated its transition towards AI-native delivery, expanding relationships with leading hyperscalers and increasing engagement with senior client decision-makers. The company has seen a significant increase in its AI-driven business, which now accounts for 15% of total revenue, up from 5% a year ago. Endava PLC (NYSE:DAVA) has expanded its strategic partner network, including a collaboration with Mastercard to accelerate the adoption of next-generation payments. The company has been invited to participate in the Google AI Agent partner program, generating new strategic engagements in North America, APAC, and Europe. Endava PLC (NYSE:DAVA) has made strides in its go-to-market approach, engaging directly with key decision-makers to show how AI can accelerate transformation priorities. Endava PLC (NYSE:DAVA) faced a challenging period with uneven demand conditions across several sectors and extended deal cycles. The company experienced a slower-than-expected pipeline conversion, impacting revenue and leading to a lowered Q4 guidance. A goodwill impairment of GBP364.6 million was taken, which is a non-cash accounting adjustment affecting reported results. Revenue for the quarter decreased by 8.4% compared to the same period in the prior year, with a constant currency decrease of 6.4%. The company reported a loss before tax of GBP372 million, including the goodwill impairment, compared to a profit in the same period last year. Q: Can you elaborate on the impact of AI-driven deals on your business and the timeline for seeing benefits from these projects? A: John Cotterell, CEO: We are seeing more substantive AI-driven deals, such as our collaborations with NatWest and Mastercard. AI-driven business now accounts for 15% of our total revenue, up from 5% a year ago. These deals are more complex and outcome-based, taking longer to close. However, they are becoming a significant part of our business, and we expect this segment to continue growing. Q: How are you addressing the challenges in capital allocation, particularly regarding debt and borrowings? A: Mark Thurston, CFO: Cash generation was disappointing this quarter, but we expect better cash flow in Q4. Reducing leverage is a focus, especially with a refinancing coming up in FY27. We are considering the wider funding of the business as part of this process. Q: Are there any vendor consolidation or competitive pricing issues affecting your revenue? A: John Cotterell, CEO: We are not seeing significant vendor consolidation headwinds. The pressure comes from delivering more productively with AI, where clients are benefiting from higher productivity. We are focusing on AI-driven transformations, which are taking longer to materialize but are progressing. Q: How are you managing change within Endava, especially with the shift to AI-first delivery? A: John Cotterell, CEO: We use a pioneer and rollout model, starting with small teams to engage with AI and then expanding across the organization. Over 75% of our staff now use AI daily. We are also training over 1,000 engineers on Dava.Flow, our AI-driven delivery framework, to prepare for increased adoption. Q: What are the challenges with outcome-based contracts, and how are you addressing them? A: John Cotterell, CEO: Outcome-based contracts are large transformative engagements that take longer to finalize due to client learning curves and legal concerns. We expect this to improve as clients become more familiar with these contracts. We are not seeing resistance to outcome-based models, and these deals are progressing. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Endava PLC Sponsored ADR? Here are five stocks we like better. Endava missed on fiscal Q3 and cut its outlook after delayed client decisions, Middle East disruption, and slower pipeline conversion weighed on demand. Revenue fell to £178.5 million, and management lowered full-year guidance, especially citing weakness in banking and capital markets. Profitability and cash flow were under pressure as adjusted PBT dropped to £3.2 million from £24.6 million a year earlier and adjusted EPS fell to £0.05. Free cash flow turned negative, while borrowings rose to £195.8 million as the company continued share repurchases. Endava is leaning harder into AI-driven services, with AI revenue rising to 15% of quarterly sales and Dava.Flow now deployed with 12 clients. Management highlighted new partnerships with Mastercard, Google Cloud, NatWest’s Tyl, and a U.K. bank as evidence of longer-term growth opportunities. Globant Is an Emerging AI Play That’s Expanding Its Footprint Endava (NYSE:DAVA) reported a weaker fiscal third quarter and lowered its fourth-quarter outlook, with management citing delayed client decisions, geopolitical disruption in the Middle East and longer sales cycles for large outcome-based contracts. Chief Executive Officer John Cotterell said demand conditions remained “uneven” across several sectors, while clients continued to scrutinize technology spending. He said the main driver of the quarterly miss and reduced Q4 guidance was slower-than-expected pipeline conversion. → CAVA Group’s Stock Looks Delicious After Strong Earnings Endava Trading Higher After Topping Q4 Consensus Views “This has been one of the more challenging periods Endava has faced in recent years,” Cotterell said on the company’s earnings call. He said clients in the Middle East delayed work because of the ongoing conflict, while the broader macroeconomic environment tied to the conflict weighed on client demand. He also said large, complex outcome-based contracts were taking longer to execute than planned. Chief Financial Officer Mark Thurston said revenue for the quarter ended March 31, 2026, was £178.5 million, down from £194.8 million in the same period a year earlier. That represented an 8.4% decline, or a 6.4% decrease in constant currency. → SpaceX IPO: Opportunity? Or the Ultimate Hype Trade? Endava reported a loss before tax of £372 million, compared with a profit before tax of £13.6 million a year earlier. The loss included a non-cash goodwill impairment charge of £364.6 million. Thurston also said the company derecognized a £23.2 million deferred tax asset related to U.K. tax losses. Both charges were described as non-cash and one-off in nature. Adjusted profit before tax was £3.2 million, compared with £24.6 million in the prior-year quarter. Adjusted PBT margin fell to 1.8% from 12.6% a year earlier. Thurston said costs rose because of higher go-to-market investments and an increase in bench capacity as the company trains staff in AI and Dava.Flow skills. → 2 Software Stocks Turning AI Fears Into Fundamental Gains Adjusted diluted earnings per share were £0.05, compared with £0.34 in the prior-year period. Cotterell sought to distinguish near-term execution issues from what he described as Endava’s longer-term strategic positioning. He said the company has accelerated its transition toward AI-native delivery, expanded relationships with hyperscalers and deepened its presence in payments transformation. Endava said its AI-driven business accounted for 15% of total revenue in the quarter, or £27 million, compared with 5% of revenue in the third quarter of fiscal 2025. Cotterell said margins in the AI-driven business are higher than in the company’s traditional digital transformation business. The company also said Dava.Flow, its AI-enabled delivery framework, was deployed with 12 clients during the quarter, up from three in the previous quarter. Cotterell said more than 1,000 engineers are using or training on Dava.Flow, representing more than 10% of Endava’s direct staff. Management highlighted several client and partner developments, including: A recently announced collaboration with Mastercard focused on next-generation payments and immersive experiences, with an initial focus on insurance and healthcare and additional attention on telecom, mobility and travel. Participation in the Google Cloud AI Agent ecosystem program, which Cotterell said is generating engagements across North America, Asia-Pacific and Europe. An agreement to implement Gemini Enterprise at a leading U.K. high street bank. A partnership with Tyl by NatWest Group to modernize and expand its payments acceptance platform using Dava.Flow and components of Endava’s PGX payments accelerator. Renewal of a long-standing partnership with Slovenia’s Ministry of Finance and Financial Administration through 2028. Thurston said Endava’s 10 largest clients accounted for 40% of revenue in the quarter, compared with 39% in the same period last year. Average spend among the top 10 clients declined 5.6% year over year, including a 3.7% headwind from foreign exchange. By geography, North America represented 38% of revenue, the U.K. 33%, Europe 23% and the rest of the world 6%. Revenue in North America declined 5.5%, driven by a 6.1% foreign-exchange headwind. Europe declined 3.6%, due mainly to weakness in payments and technology, media and telecom. The U.K. fell 15.4%, largely due to the reclassification of a large payments client from the U.K. to North America. In the question-and-answer session, Thurston said banking and capital markets had seen a step down in the third quarter and that the slowdown was most pronounced in the U.S. and U.K. He said Endava expects some recovery in the segment in Q4, though not as much as previously anticipated. In healthcare, he said one large client continued to slow spending, while another client was growing quickly, creating an offset. Adjusted free cash flow was negative £3.1 million in the quarter, compared with positive £17.5 million a year earlier. Thurston attributed the negative free cash flow mainly to an increase in receivables because a large portion of quarterly billings was issued in March. He said Endava expects to collect the majority of those receivables by the end of June. Cash and cash equivalents totaled £48.4 million at March 31, 2026, compared with £59.3 million at June 30, 2025, and £68.3 million at March 31, 2025. Borrowings rose to £195.8 million from £180.9 million at June 30, 2025, and £136.5 million a year earlier, primarily to support the company’s share repurchase program. Asked about capital allocation, Thurston said leverage is an area the company wants to focus on reducing. He also noted that Endava has a refinancing coming up during fiscal 2027 and will consider the broader funding of the business as part of that process. For the fourth quarter of fiscal 2026, Endava expects revenue of £181 million to £185 million, representing a constant-currency revenue decline of 3.5% to 1.0% year over year. The company expects adjusted diluted EPS of £0.09 to £0.13. For the full fiscal year, Endava expects revenue of £721.8 million to £725.8 million, representing a constant-currency revenue decrease of 6.0% to 5.0%. Adjusted diluted EPS is expected to be £0.45 to £0.49. Thurston said the lowered Q4 guidance reflected slower-than-expected pipeline conversion, “most marked in banking and capital markets across all of our regions.” He said the company had 95% contracted and committed coverage at the high end of the Q4 revenue range and 97% at the low end, leaving £9 million to convert at the high end and £5 million at the low end. Despite the weaker results, Cotterell said Endava remains focused on the transition toward AI-driven delivery and outcome-based work. “We are seeing much more substantive AI-driven deals coming through,” he said, adding that those engagements are often more complex and take longer to close. Endava PLC is a publicly traded technology services company specializing in digital transformation and agile software development. The firm helps enterprise clients design, build and manage custom software solutions across industries such as financial services, payments, retail, telecommunications and media. Its service offerings span end-to-end product design, customer experience, application development, quality engineering, DevOps, automation and artificial intelligence, all delivered through agile methodologies. Founded in 2000, Endava has grown from a small software provider into a global IT partner. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Endava Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

Q3 FY2026 8.4% Year on Year Revenue Decline to £178.5 million 6.4% Revenue Decline at Constant Currency Diluted EPS £(7.55) compared to £0.18 in the prior year comparative period Adjusted Diluted EPS £0.05 compared to £0.34 in the prior year comparative period LONDON, May 21, 2026--(BUSINESS WIRE)--Endava plc (NYSE: DAVA) ("Endava" or the "Company"), the technology-driven business transformation group whose AI-native approach combines cutting edge technology with deep industry expertise, today announced results for the three months ended March 31, 2026 ("Q3 FY2026"). "This has been one of the more challenging periods Endava has faced in recent years. Demand remains uneven across sectors, deal cycles continue to be extended, and clients are scrutinizing technology spending more carefully than at any point since the macro slowdown began. Against this backdrop, revenue came in below expectations, margin contracted, and we recognized a non-cash goodwill impairment. We are disappointed by these outcomes, but it is important to distinguish near-term execution challenges from our long-term strategic positioning. During the quarter, we accelerated our transition toward AI-native delivery and deepened our presence in payments transformation work. We also engaged more directly with senior client decision-makers on enterprise-scale AI initiatives. We recently announced a collaboration with Mastercard combining our AI-native engineering and industry expertise with Mastercard’s global reach and data-driven products and services. Additionally, we were selected as a strategic partner by Tyl by NatWest, NatWest Group’s merchant-payments arm, to modernize and expand its payments-acceptance platform. These initiatives, and others like them, have moved our AI driven business up from 5% of total revenue a year ago in Q3FY25, to 15% of total revenue in Q3FY26, showing the underlying momentum of our pivot. By keeping our teams focused on these priorities and serving as trusted partners to decision-makers who are redefining their technology roadmaps, we believe we are positioning Endava to convert today’s headwinds into tomorrow’s momentum," said John Cotterell, Endava's CEO. THIRD QUARTER FISCAL YEAR 2026 FINANCIAL METRICS: Revenue for Q3 FY2026 was £178.5 million, a decline of 8.4% compared to £194.8 million in the same period in the prior year. Revenue decline at constant currency (a non-IFRS measure)* was 6.4% for Q3 FY2026. Loss before tax for Q3 FY2026 was £(372.0) million, compared to profit before tax of £13.6 million in the same period in the prior year. Adjusted profit before tax (a non-IFRS measure)* for Q3 FY2026 was £3.2 million, or 1.8% of revenue, compared to £24.6 million, or 12.6% of revenue, in the same period in the prior year. Loss for the period was £(394.4) million, resulting in diluted loss per share of £(7.55), compared to profit for the period of £10.9 million and diluted earnings per share ("EPS") of £0.18 in the same period in the prior year. Adjusted profit for the period (a non-IFRS measure)* was £2.6 million, resulting in adjusted diluted EPS (a non-IFRS measure)* of £0.05, compared to adjusted profit for the period of £20.1 million and adjusted diluted EPS of £0.34 in the same period in the prior year. During the quarter, an impairment of £364.6 million was recognised against goodwill, which is included as an exceptional item in the condensed consolidated statements of comprehensive income. This goodwill impairment has arisen due to the performance of the Company in the year to date, as well as management's reforecast of the Company's future performance through to FY31 and into perpetuity, by comparing the Company's recoverable amount derived from future forecasts to the Company's enterprise value. No goodwill impairment was recognised in the same period in the prior year. During the quarter the Group incurred a tax charge of £23.2m relating to the derecognition of the entire UK deferred tax asset. The amount is included as an exceptional item in the condensed consolidated statements of comprehensive income. The derecognition follows a reassessment of the recoverability of the deferred tax asset based on updated expectations for future UK taxable profits. The reassessment is consistent with the reforecast of the company’s future performance considered in the assessment of the recoverable value of goodwill. CASH FLOW: Net cash used in operating activities was £(0.4) million in Q3 FY2026, compared to net cash from operating activities of £18.7 million in the same period in the prior year. Adjusted free cash flow (a non-IFRS measure)* was £(3.1) million in Q3 FY2026, compared to £17.5 million in the same period in the prior year. At March 31, 2026, Endava had cash and cash equivalents of £48.4 million, compared to £59.3 million at June 30, 2025. * Definitions of the non-IFRS measures used by the Company and a reconciliation of such measures to the related IFRS financial measure can be found under the sections below titled "Non-IFRS Financial Information" and "Reconciliation of IFRS Financial Measures to Non-IFRS Financial Measures." OTHER METRICS FOR THE QUARTER ENDED MARCH 31, 2026: Headcount totaled 11,225 at March 31, 2026, with an average of 10,166 operational employees in Q3 FY2026, compared to a headcount of 11,365 at March 31, 2025 and an average of 10,272 operational employees in the same period in the prior year. Number of clients with over £1 million in revenue on a rolling twelve-month basis was 129 at March 31, 2026 compared to 136 clients at March 31, 2025. Top 10 clients accounted for 40% of revenue in Q3 FY2026, compared to 39% in the same period in the prior year. By geographic region, 38% of revenue was generated in North America, 23% was generated in Europe, 33% was generated in the United Kingdom and 6% was generated in the rest of the world in Q3 FY2026. This compares to 37% in North America, 22% in Europe, 35% in the United Kingdom and 6% in the Rest of the World in the same period in the prior year. By industry vertical, 23% of revenue was generated from Payments, 22% from BCM, 9% from Insurance, 16% from TMT, 8% from Mobility, 11% from Healthcare, and 11% from Other in Q3 FY2026. This compares to 19% from Payments, 21% from BCM, 9% from Insurance, 18% from TMT, 8% from Mobility, 12% from Healthcare, and 13% from Other in the same period in the prior year. OUTLOOK: Fourth Quarter Fiscal Year 2026: Endava expects revenue will be in the range of £181.0 million to £185.0 million, representing a constant currency revenue decline of between (3.5)% and (1.0)% on a year-over-year basis. Endava expects adjusted diluted EPS to be in the range of £0.09 to £0.13 per share. Full Fiscal Year 2026: Endava expects revenue will be in the range of £721.8 million to £725.8 million, representing a constant currency revenue decline of between (6.0)% and (5.0)% on a year-over-year basis. Endava expects adjusted diluted EPS to be in the range of £0.45 to £0.49 per share. This above guidance for the fourth quarter and full fiscal year 2026 assumes the exchange rates on April 30, 2026 (when the exchange rate was 1 British Pound to 1.35 US Dollar and 1.16 Euro). Endava is not able, at this time, to reconcile its expectations for the fourth quarter and full fiscal year 2026 for a rate of revenue growth or decline at constant currency or adjusted diluted EPS to their respective most directly comparable IFRS measures as a result of the uncertainty regarding, and the potential variability of, reconciling items such as share-based compensation expense, amortisation of acquired intangible assets and foreign currency exchange losses / (gains), net, as applicable. Accordingly, a reconciliation is not available without unreasonable effort, although it is important to note that these factors could be material to Endava's results computed in accordance with IFRS. The guidance provided above is forward-looking in nature. Actual results may differ materially. See "Forward-Looking Statements" below. SHARE REPURCHASE PROGRAM: As of March 31, 2026, the Company had repurchased an aggregate of 8,047,338 American Depositary Shares for $121.9 million under its share repurchase program. As of March 31, 2026, the Company had $28.1 million remaining for repurchase under our Board's share repurchase authorization. CONFERENCE CALL DETAILS: The Company will host a conference call at 8:00 am ET today, May 21, 2026, to review its Q3 FY2026 results. To participate in Endava’s Q3 FY2026 earnings conference call, please dial in at least five minutes prior to the scheduled start time (844) 481-2736 or (412) 317-0665 for international participants, Conference ID: Endava Call. Investors may listen to the call on Endava’s Investor Relations website at http://investors.Endava.com. The webcast will be recorded and available for replay until Thursday, June 18, 2026. ABOUT ENDAVA PLC: Endava is a leading provider of next-generation technology services, dedicated to enabling its clients to accelerate growth, tackle complex challenges and thrive in evolving markets. By combining innovative technologies and deep industry expertise with an AI-native approach, Endava consults and partners with clients to create solutions that drive transformation, augment intelligence and deliver lasting impact. From ideation to production, it supports clients with tailor-made solutions at every stage of their digital transformation, regardless of industry, region or scale. Endava’s clients span payments, insurance, banking and capital markets, technology, media, telecommunications, healthcare, mobility, retail and consumer goods and more. As of March 31, 2026, 11,225 Endavans are helping clients break new ground across locations in Europe, the Americas, Asia Pacific and the Middle East. NON-IFRS FINANCIAL INFORMATION: To supplement Endava’s Condensed Consolidated Statements of Comprehensive Income, Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Cash Flows presented in accordance with IFRS, the Company uses non-IFRS measures of certain components of financial performance in this press release. These measures include revenue (decline)/growth rate at constant currency, adjusted profit before tax, adjusted profit for the period, adjusted diluted EPS and adjusted free cash flow. Revenue (decline)/growth rate at constant currency is calculated by translating revenue from entities reporting in foreign currencies into British Pounds using the comparable foreign currency exchange rates from the prior period. For example, the average currency rates in effect for the fiscal quarter ended March 31, 2025 were used to convert revenue for the fiscal quarter ended March 31, 2026 and the revenue for the comparable prior period. Adjusted profit before tax ("Adjusted PBT") is defined as the Company’s (loss)/profit before tax adjusted to exclude the impact of share-based compensation expense, amortisation of acquired intangible assets, realised and unrealised foreign currency exchange losses/(gains), net, goodwill impairment charge, restructuring costs, exceptional people charges, and fair value movement of contingent consideration, all of which are non-cash items except for realised foreign currency exchange losses/(gains), net, restructuring costs and exceptional people charges. Our Adjusted PBT margin is our Adjusted PBT as a percentage of our total revenue. Adjusted profit for the period is defined as Adjusted PBT less the adjusted tax charge for the period. The adjusted tax charge is the tax charge adjusted for the tax impact of the adjustments to PBT, the release of the deferred tax liability relating to Romanian withholding tax and the reduction of the UK deferred tax asset in full. Adjusted diluted EPS is defined as Adjusted profit for the period, divided by weighted average number of shares outstanding - diluted. Adjusted free cash flow is the Company’s net cash from / (used in) operating activities, plus grants received, less net purchases of non-current assets (tangible and intangible). Adjusted free cash flow is not intended to be a measure of residual cash available for management's discretionary use since it omits significant sources and uses of cash flow, including mandatory debt repayments and changes in working capital. Management believes these measures help illustrate underlying trends in the Company's business and uses the measures to establish budgets and operational goals, communicated internally and externally, for managing the Company's business and evaluating its performance. Management also believes the presentation of its non-IFRS financial measures enhances an investor’s overall understanding of the Company’s historical financial performance. The presentation of the Company’s non-IFRS financial measures is not meant to be considered in isolation or as a substitute for the Company’s financial results prepared in accordance with IFRS, and its non-IFRS measures may be different from non-IFRS measures used by other companies. Investors should review the reconciliation of the Company’s non-IFRS financial measures to the comparable IFRS financial measures included below and not rely on any single financial measure to evaluate the Company’s business. FORWARD-LOOKING STATEMENTS: This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by the use of terms and phrases such as "believe," "expect," "intends," "outlook," "may," "will," and other similar terms and phrases. Such forward-looking statements include, but are not limited to, statements regarding our long-term strategic positioning, Endava's business strategies, plans, operations and growth opportunities, and Endava's future financial performance, including management's financial outlook for the fourth quarter and full fiscal year 2026. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated by these forward-looking statements, including, but not limited to: Endava’s ability to achieve its revenue growth goals, including as a result of a slower conversion of its pipeline; Endava's expectations of future operating results or financial performance; Endava’s ability to accurately forecast and achieve its announced guidance; Endava's ability to retain existing clients and attract new clients, including its ability to increase revenue from existing clients and diversify its revenue concentration; Endava’s ability to attract and retain highly-skilled IT professionals at cost-effective rates; Endava's ability to successfully identify acquisition targets, consummate acquisitions and successfully integrate acquired businesses and personnel; Endava's ability to penetrate new industry verticals and geographies and grow its revenue in current industry verticals and geographies; Endava’s ability to maintain favorable pricing and utilisation rates to support its gross margin; the effects of increased competition as well as innovations by new and existing competitors in its market; the size of Endava's addressable market and market trends; Endava’s ability to adapt to technological change and industry trends and innovate solutions for its clients; Endava's plans for growth and future operations, including its ability to manage its growth; Endava's ability to effectively manage its international operations, including Endava's exposure to foreign currency exchange rate fluctuations; Endava's future financial performance; the impact of unstable market, economic, and global conditions, as well as other risks and uncertainties discussed in the "Risk Factors" section of Endava's Annual Report on Form 20-F for the year ended June 30, 2025 filed with the SEC on September 4, 2025 and in other filings that Endava makes from time to time with the SEC. In addition, the forward-looking statements included in this press release represent Endava’s views and expectations as of the date hereof and are based on information currently available to Endava. Endava anticipates that subsequent events and developments may cause its views to change. Endava specifically disclaims any obligation to update the forward-looking statements in this press release except as required by law. These forward-looking statements should not be relied upon as representing Endava’s views as of any date subsequent to the date hereof. RECONCILIATION OF IFRS FINANCIAL MEASURES TO NON-IFRS FINANCIAL MEASURES SUPPLEMENTARY INFORMATION View source version on businesswire.com: https://www.businesswire.com/news/home/20260520825840/en/ Contacts INVESTOR CONTACT:Endava plcLaurence Madsen, Head of Investor [email protected]

Amdocs (DOX) came out with quarterly earnings of $1.78 per share, beating the Zacks Consensus Estimate of $1.77 per share. This compares to earnings of $1.78 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +0.85%. A quarter ago, it was expected that this provider of computer systems integration would post earnings of $1.75 per share when it actually produced earnings of $1.81, delivering a surprise of +3.43%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Amdocs, which belongs to the Zacks Computers - IT Services industry, posted revenues of $1.17 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.44%. This compares to year-ago revenues of $1.13 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Amdocs shares have lost about 22.6% since the beginning of the year versus the S&P 500's gain of 8.1%. While Amdocs has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Amdocs was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.88 on $1.18 billion in revenues for the coming quarter and $7.44 on $4.7 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computers - IT Services is currently in the bottom 43% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Endava PLC Sponsored ADR (DAVA), has yet to report results for the quarter ended March 2026. The results are expected to be released on May 21. This company is expected to post quarterly earnings of $0.27 per share in its upcoming report, which represents a year-over-year change of -37.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Endava PLC Sponsored ADR's revenues are expected to be $249.69 million, up 1.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amdocs Limited (DOX) : Free Stock Analysis Report Endava PLC Sponsored ADR (DAVA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

TaskUs (TASK) came out with quarterly earnings of $0.35 per share, missing the Zacks Consensus Estimate of $0.36 per share. This compares to earnings of $0.38 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -1.41%. A quarter ago, it was expected that this provider of outsourced digital services would post earnings of $0.36 per share when it actually produced earnings of $0.4, delivering a surprise of +11.11%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. TaskUs, which belongs to the Zacks Computers - IT Services industry, posted revenues of $306.27 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 3.50%. This compares to year-ago revenues of $277.79 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. TaskUs shares have lost about 45.8% since the beginning of the year versus the S&P 500's gain of 6%. While TaskUs has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for TaskUs was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.32 on $300.92 million in revenues for the coming quarter and $1.44 on $1.23 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computers - IT Services is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Endava PLC Sponsored ADR (DAVA), is yet to report results for the quarter ended March 2026. This company is expected to post quarterly earnings of $0.27 per share in its upcoming report, which represents a year-over-year change of -37.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Endava PLC Sponsored ADR's revenues are expected to be $249.69 million, up 1.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report TaskUs, Inc. (TASK) : Free Stock Analysis Report Endava PLC Sponsored ADR (DAVA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

AI pivot & Dava.Flow: Endava reported Q2 revenue of GBP 184.1 million (down 5.9% YoY, up 3.3% QoQ) and said its AI-native Dava.Flow engagement model has early client traction—two live engagements delivered much faster outputs, higher productivity and Policy-as-Code governance, with rollouts focused on larger outcome-based deals. Margins and profits under pressure: The company posted a loss before tax of GBP 7.2 million (vs. a GBP 2.5m profit a year earlier), adjusted PBT fell to GBP 10.7 million and adjusted PBT margin dropped to 5.8%, declines management attributes to investment in AI talent and delivery. Guidance, financing and partnerships: Endava guided Q3 revenue of GBP 182–185 million and FY revenue of GBP 736–750 million (both lower YoY in constant currency), has increased borrowings to GBP 202.7 million to fund a share buyback (≈8m ADSs repurchased for $121.9m), and emphasized partnerships with OpenAI and hyperscalers as drivers of enterprise AI adoption. Interested in Endava PLC Sponsored ADR? Here are five stocks we like better. Globant Is an Emerging AI Play That’s Expanding Its Footprint Endava (NYSE:DAVA) reported second-quarter fiscal 2026 revenue of GBP 184.1 million, which Chief Executive Officer John Cotterell said reflects continued investment in an “AI-native” shift and early client traction for the company’s Dava.Flow engagement model. Revenue fell 5.9% year over year but rose 3.3% sequentially from the prior quarter, and Chief Financial Officer Mark Thurston said results came in above the upper end of the company’s guidance for the period ended December 31, 2025. Cotterell framed the quarter around Endava’s ongoing pivot toward AI, describing investments in recruiting and training “next-gen” talent, building a partner ecosystem, and evolving engagement approaches. He said client interest is building in Dava.Flow, which the company describes as an “AI-native engagement lifecycle.” → Corning’s Surprise AI Boom: Is It Already Too Late to Buy? Endava Trading Higher After Topping Q4 Consensus Views On a recent project, Cotterell said an initial “signal session” produced outputs in 90 minutes that would normally take weeks, including an opportunity assessment, insights, product requirement documents, and an “agent-ready backlog.” Two live Dava.Flow engagements are currently underway, and management said early results show higher productivity, improved quality, and strict policy adherence via “Policy as Code” governance, with autonomous agents handling routine tasks. In Q&A, Cotterell said the company is not aiming to roll Dava.Flow across its entire business immediately. Instead, Endava is focusing it on larger, outcome-based deals where higher delivery velocity could allow the company to participate in more upside. Management did not provide a specific count of clients or revenue tied to Dava.Flow, noting that client numbers could appear low while project scale is higher. → 3 Discount Retail Stocks to Watch as Earnings Put Valuations to the Test Management highlighted several AI and industry engagements. Cotterell described an enterprise-scale AI project with a global payments network to modernize a chargeback dispute system, noting the effort involves using AI to interpret a complex rule book and route and analyze cases automatically. He said early results midway through a six-month project were promising, including an auditable system that could reduce manual effort and improve decision consistency. Endava also discussed multi-year work with a specialty insurer, where the company helped establish a “ring-fenced incubator” to pursue an AI-native approach, including digitization and workflow automation. Cotterell said an AI-native workflow was stood up in roughly three weeks and a backlog of more than 50 improvement hypotheses was created. → Ondas Jumps on German Police and NATO Wins—Can the Rally Hold Into Earnings? On the commercial side, Cotterell cited: A PayNet-NETS joint venture (appointed Nexus Technical Operator by Nexus Global Payments) selecting Endava to design and build a cloud-native cross-border payment switch on AWS. Extensions of strategic delivery commitments with Endava’s two largest payments customers. In Q&A, management characterized these as primarily extensions at run-rate levels, with some incremental work, in switch/gateway-related areas focused on cost rationalization and enhanced customer value propositions. Work with Accor Plus to overhaul payments infrastructure and a loyalty program across Asia Pacific, including a deployment across 10 markets; Cotterell said product page conversion rose 39% in the first 30 days after launch. An expanded partnership with an electric vehicle manufacturer, replacing a competitor and adding an AI-enabled digital CRM work stream. A three-year strategic partnership with Boax to support development and expansion of its product portfolio, with additional collaboration through Endava Rise. A life sciences engagement to move agentic AI prototypes into governed, platform-supported products, paired with “dynamic solution squads” for outcomes-focused co-creation. Endava emphasized partnerships across AI model providers and hyperscalers. Cotterell said January marked the completion of the first year as an official services partner of OpenAI and that Endava is seeing demand growth as clients scale proofs of concept into enterprise-wide deployments of Enterprise ChatGPT. He cited work with Evoke to roll out enterprise-wide ChatGPT enablement and role-specific AI training. The company also discussed accelerating demand across AWS, Google Cloud, and Microsoft Azure, driven by modernization initiatives and AI adoption. Endava also announced partnerships aimed at supporting Dava.Flow, including embedding Miro’s workspace across its delivery network and expanding agentic coding via Cognition tools. Thurston said these partnerships include software licensing and broader collaboration that adds to investment levels and weighs on margins. Addressing investor questions about potential services displacement from foundational model providers, Cotterell argued enterprise adoption requires governance, regulatory alignment, data access, and legacy modernization—needs he said “out-of-the-box” solutions do not address. He said Endava created Dava.Flow as a replacement for Agile in agentic settings, where “people-to-machine” interactions become more important than traditional person-to-person workflows. Thurston reported loss before tax of GBP 7.2 million versus a profit of GBP 2.5 million a year earlier. Adjusted profit before tax (PBT) was GBP 10.7 million, down from GBP 21.8 million, and the adjusted PBT margin was 5.8% versus 11.2% in the prior-year period. Thurston attributed margin pressure to investment in the AI-native model and next-gen talent, estimating the shift has reduced adjusted PBT margin by about 3% through the first half of fiscal 2026. Adjusted diluted EPS was 16 pence, compared with 30 pence a year earlier. Revenue from the top 10 clients represented 35% of revenue, and average spend per top-10 client declined to GBP 6.5 million from GBP 7.1 million; Thurston said FX movements contributed about 2% of the year-over-year decline in that metric. By geography, North America represented 40% of revenue, Europe 23%, the U.K. 31%, and the rest of the world 6%. Thurston said North America’s decline was driven by FX headwinds and the absence of contribution from a previously lost media client. He cited weakness in payments and mobility for Europe’s decline, and noted the U.K. decline included a reclassification of a large payments client to North America as well as weakness in travel, transport, and tourism (TNT) in the U.K. Revenue in the rest of the world rose 21.8%, driven mainly by payments and TNT. Adjusted free cash flow was GBP 20.1 million, down from GBP 31.6 million a year earlier. Cash and cash equivalents ended at GBP 68.5 million. Borrowings increased to GBP 202.7 million, which Thurston said supported funding requirements for the company’s share repurchase program. As of January 31, 2026, Endava had repurchased about 8 million ADSs for $121.9 million, with $28.1 million remaining under authorization. Capital expenditure was 4.4% of revenue, up from 0.2% in the prior-year period, driven primarily by what Thurston described as a one-time spend on an internally developed Payments Accelerator. Endava ended the quarter with 11,385 employees, down 2.4% year over year. Cotterell said the company is streamlining roles in softer-demand areas while broadening and upskilling its AI talent base. For the third quarter of fiscal 2026, Endava guided revenue of GBP 182 million to GBP 185 million, representing a constant-currency decline of 4% to 2.5% year over year, and adjusted diluted EPS of 18 to 21 pence. For full-year fiscal 2026, the company guided revenue of GBP 736 million to GBP 750 million (a constant-currency decline of 3.5% to 1.5%) and adjusted diluted EPS of 80 to 86 pence. Thurston said the U.S. dollar’s weakening against the British pound remains a revenue headwind, while investments in AI-native delivery and talent continue to pressure margins. In Q&A, management also highlighted working-day impacts on quarterly sequencing and said Q4 expectations are underpinned by secured deal ramps. Management described the market backdrop as uncertain and pointed to the width of its guidance ranges as reflecting current dynamics. Endava PLC is a publicly traded technology services company specializing in digital transformation and agile software development. The firm helps enterprise clients design, build and manage custom software solutions across industries such as financial services, payments, retail, telecommunications and media. Its service offerings span end-to-end product design, customer experience, application development, quality engineering, DevOps, automation and artificial intelligence, all delivered through agile methodologies. Founded in 2000, Endava has grown from a small software provider into a global IT partner. The article "Endava Q2 Earnings Call Highlights" was originally published by MarketBeat.

This article first appeared on GuruFocus. Revenue: GBP184.1 million, a 5.9% decrease year-on-year, and a 3.3% increase from Q1 FY26. Loss Before Tax: GBP7.2 million compared to a profit of GBP2.5 million in the prior year. Adjusted Profit Before Tax (PBT): GBP10.7 million, down from GBP21.8 million in the prior year. Adjusted PBT Margin: 5.8%, compared to 11.2% in the prior year. Adjusted Diluted Earnings Per Share: 16p, compared to 30p in the prior year. Revenue from Top 10 Clients: 35% of total revenue, down from 36% in the prior year. Average Spend per Top 10 Client: GBP6.5 million, a 7.9% decrease year-over-year. Regional Revenue Distribution: North America 40%, Europe 23%, UK 31%, Rest of the World 6%. Adjusted Free Cash Flow: GBP20.1 million, down from GBP31.6 million in the prior year. Cash and Cash Equivalents: GBP68.5 million as of December 31, 2025. Borrowings: GBP202.7 million as of December 31, 2025. Capital Expenditure: 4.4% of revenue, up from 0.2% in the prior year. Share Repurchase Program: Approximately 8 million ADSs purchased for $121.9 million. Q3 FY26 Revenue Guidance: GBP182 million to GBP185 million, a constant currency decrease of 4% to 2.5% year-over-year. Q3 FY26 Adjusted Diluted EPS Guidance: 18p to 21p per share. Full Year FY26 Revenue Guidance: GBP736 million to GBP750 million, a constant currency decrease of 3.5% to 1.5% year-over-year. Full Year FY26 Adjusted Diluted EPS Guidance: 80p to 86p per share. Warning! GuruFocus has detected 6 Warning Signs with DAVA. Is DAVA fairly valued? Test your thesis with our free DCF calculator. Release Date: February 19, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Endava PLC (NYSE:DAVA) is heavily investing in AI to establish itself as a leader, including recruitment and training of next-gen talent. The company has expanded its network of strategic partners, enhancing its reach and capabilities. Endava PLC (NYSE:DAVA) has secured significant client wins, such as designing a cloud-native cross-border payment switch for Nexus Global Payments. The company is seeing strong initial interest in its AI native engagement life cycle, Dava.Flow, which promises faster delivery and better quality. Endava PLC (NYSE:DAVA) has a strong partnership with OpenAI, leading to a pipeline of opportunities across various industries. Revenue for the quarter decreased by 5.9% year-over-year, indicating a decline in financial performance. The company reported a loss before tax of GBP7.2 million, compared to a profit in the same period last year. Adjusted PBT margin decreased significantly from 11.2% to 5.8%, impacted by investments in AI and next-gen talent. Revenue from the 10 largest clients decreased, with a notable 7.9% year-over-year decline in average spend per client. The company faces ongoing FX headwinds, particularly from the weakening US dollar, affecting revenue growth. Q: Can you explain the drivers for the expected growth in the fourth quarter, given the flat outlook for the third quarter? A: Mark Thurston, CFO, explained that while Q3 appears flat, underlying growth is about 4% due to FX headwinds and fewer working days. For Q4, an increase in working days and secured deals are expected to drive a sequential growth of about 6%, underpinned by recent deal wins. Q: Could you provide more details on the extended commitments with your two largest payment clients? A: John Cotterell, CEO, mentioned that the extensions involve work in the switch and gateway space, focusing on cost rationalization and enhancing customer value propositions. These are mostly extensions of existing work with some incremental additions. Q: How are the increased investments impacting your margins, and is there any FX impact on the margin front? A: Mark Thurston noted that investments in partnerships, such as with Miro and Cognition, are slightly heavier in the second half, impacting margins by about 3%. FX impacts are minor, around 0.5%, mainly affecting revenue growth rather than margins. Q: Can you discuss the trends in OpenAI GPT enterprise adoption and any concerns about services and software displacement? A: John Cotterell highlighted strong enterprise adoption of OpenAI's solutions, with Endava helping to integrate these into enterprise contexts. He dispelled concerns about displacement, emphasizing that enterprise adoption requires complex governance and integration, which presents growth opportunities for Endava. Q: Could you elaborate on the adoption and impact of Dava.Flow on pricing and margins? A: John Cotterell stated that Dava.Flow is focused on outcome-based deals, offering higher velocity and potential upside. While not rolled out across all clients, it is applied to larger projects, enhancing Endava's ability to deliver outcomes efficiently. For the complete transcript of the earnings call, please refer to the full earnings call transcript.