Nagarro (NA9) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue grew 6.5% year-on-year in constant currency and 0.5% in Euro terms, in line with guidance.

• Net profit increased by €7.9 million to €19.2 million compared to Q1 2025.

• Continued transition from digital engineering to AI transformation leadership, with investments in advisory capabilities and organizational restructuring.

• Completed four acquisitions in 2025, including Charles Hudson and Inaho, expanding sector and geographic reach.

• Appointed first-ever CFO, Prateek Aggarwal, to strengthen financial management and capital allocation.

Financial highlights

• Q1 2026 gross margin was 31.2%, up 0.6 percentage points year-over-year.

• Adjusted EBITDA margin for Q1 was 12.6%, improved year-over-year but below full-year target due to fewer working days.

• EBIT reached €30.0 million, up from €24.1 million year-over-year.

• Net financial liabilities at March 31, 2026, were €267.5 million; net leverage ratio at 1.9x.

• Cash balance stood at €112.6 million; working capital at €232.7 million.

• Q1 2026 total cash outflow was €13.5 million, improved from €23.6 million outflow in Q1 2025.

Outlook and guidance

• Full-year revenue expected at midpoint of €1.02–1.08 billion guidance, adjusted for FX.

• Adjusted EBITDA, excluding €15.5 million unrealized Forex impact, would be about €153.7 million, near the upper end of the 14.5%-15.5% margin range.

• Confident in meeting full-year guidance, with Q2 and Q3 expected to benefit from more working days and utilization levers.

• CSAT and NPS scores expected to remain stable at 92% and 65, respectively, in 2026.