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Nagarro Reports Financial Growth for Q2 and H1 2026

On August 14, 2026, Nagarro, a trailblazer in AI transformation and engineering, revealed its unaudited financial results for the second quarter (Q2) and the first half (H1) of 2026. According to the report, the company witnessed a revenue increase of 2.0% in constant currency terms for Q2, with €252.4 million earned, a slight rise from €252.0 million in the previous year.

In H1 2026, Nagarro's revenue reached €500.5 million, marking a 4.2% year-on-year growth in constant currency, compared to €498.9 million in H1 2025. These results illustrate Nagarro's strong market performance, particularly in an economic climate characterized by challenges. The quarter's organic growth in constant currency was also notable at 0.6%, despite a corresponding decrease of 1.1% in Euro terms due to currency fluctuations.

Financial Highlights of Q2 2026

The gross profit for Q2 2026 fell to €81.8 million from €83.7 million the year before, resulting in a gross margin of 32.4%. In terms of adjusted EBITDA, Nagarro demonstrated significant improvement, growing to €37.8 million, accounting for 15.0% of revenue, compared to €30.5 million and 12.1% in Q2 2025.

Although the regular EBITDA saw a decline to €27.7 million from €32.0 million in the prior year, the adjusted figure indicates an underlying growth trend. The decline in EBITDA is primarily attributed to a substantial increase in costs related to share-based payment arrangements, which rose by €12.0 million year-on-year. Consequently, EBIT also fell from €23.4 million in Q2 2025 to €19.2 million in Q2 2026, reflecting tight margins impacted by these expenses.

Interestingly, Nagarro's net profit showed a positive trajectory, increasing from €8.3 million in Q2 2025 to €10.6 million in the latest quarter primarily influenced by the absence of withholding tax expenses associated with intra-group dividends.

H1 Results

Moving onto the first half of the year, Nagarro's overall performance remained robust. An organic year-on-year revenue growth of 2.7% was reported in constant currency, ultimately facing a 1.1% decline in Euro terms. Gross profit figures remained relatively stable, slightly trending downward to €159.2 million, marking a mere 0.1% decrease year-on-year.

The adjusted EBITDA for H1 2026 reached €69.1 million, translating into a notable growth margin of 13.8% overall. Furthermore, the EBITDA itself increased to €66.5 million, positioned well above the €65.0 million recorded in the same period of the previous year. The EBIT saw a minor boost, climbing to €49.2 million from €47.5 million in H1 2025, indicating resilience in operational efficacy.

Net profit in H1 climbed impressively from €19.6 million to €29.8 million, reinforcing Nagarro's solid standing in the market.

Outlook and Strategic Developments

Despite a decrease in cash inflow to €29.5 million in H1 2026 from €42.4 million the previous year, Nagarro remains optimistic about future growth due to pending collections from specific clients. Furthermore, the company's cash balance rose to €131.3 million, up from €124.6 million at the end of 2025.

The company also maintained its borrowing levels at €310.5 million, indicating stability in financial leverage and operational funding. As of June 30, 2026, Nagarro employed 18,711 professionals, illustrating its expansive growth and commitment to fostering talent in the engineering and technology sectors.

Conclusion

Nagarro’s solid revenue growth, expansive customer base, and stable financial health, despite some challenges, demonstrate the company’s capacity to navigate through complex market conditions. Looking forward, Nagarro is set to hold its earnings call on August 14, 2026, to discuss these results in greater detail. Their trajectory emphasizes a strong commitment to growth and innovation within the AI engineering landscape.