What was Endava's revenue in FQ3 2026?

Endava's revenue was £178.5 million, down 8.4% year-over-year.

Do analysts recommend buying Endava stock after the results?

Despite weak results, some analysts view the stock as undervalued and recommend buying.

Endava Reports 8.4% Revenue Decline in FQ3 2026, Analysts See Value

Q: Why did Endava record a goodwill impairment?

The company recorded a £364.6 million goodwill impairment due to uneven demand and extended deal cycles, leading to lower growth expectations.

Endava (DAVA) reported challenging FQ3 2026 results with revenue declining 8.4% YoY to £178.5 million. The company also recorded a £364.6 million goodwill impairment due to uneven demand and extended deal cycles. Despite the underperformance, some analysts consider the stock a buy at current levels.

Endava (NYSE:DAVA) reported its fiscal third-quarter 2026 results (ended March 31, 2026), which missed expectations due to tough market conditions. Revenue fell 8.4% year-over-year to £178.5 million, and the company recorded a non-cash goodwill impairment charge of £364.6 million. Despite these challenges, some analysts believe the stock is undervalued.

Key Financial Results

Metric	FQ3 2026	FQ3 2025 (Estimated)	Change
Revenue	£178.5M	£194.9M	-8.4%
Net Income	Not disclosed	Not disclosed	-
EPS	Not disclosed	Not disclosed	-
Goodwill Impairment	£364.6M	-	-

Note: Comparable prior-year figures are not available from the source.

Highlights from the Report

Weak Demand: Endava experienced uneven demand from clients, impacting revenue.
Extended Deal Cycles: Sales cycles lengthened, delaying revenue recognition.
Goodwill Impairment: A non-cash charge of £364.6 million was recorded, reflecting lower growth expectations.

Guidance

Endava did not provide specific guidance for FQ4 2026. However, management indicated expectations for gradual demand improvement in the second half of the year.

Stock Impact

The source did not specify the stock's reaction to the earnings release. The stock is likely to remain under pressure in the near term due to weak results, but some analysts view the decline as a buying opportunity.

What This Means for Investors

Endava's results highlight ongoing challenges in the tech services sector, particularly weak demand and extended sales cycles. Investors should monitor the company's ability to improve revenue in coming quarters and any signs of demand recovery.