Nagarro Reports 6.5% Year-Over-Year Revenue Growth for Q1 2026

Nagarro Reports Impressive Financial Results for Q1 2026

Nagarro, a renowned leader in AI transformation and engineering, recently presented its unaudited financial results for the first quarter of 2026, highlighting a notable year-over-year revenue growth of 6.5% in constant currency.

In Q1 2026, Nagarro's revenue reached €248.1 million, which marks a slight increase of 0.9% compared to the previous quarter of €245.9 million. In terms of constant currency, the quarter also saw a 1.2% rise. Compared to the same quarter in 2025, revenue experienced a modest growth of 0.5% from €246.9 million, while translating to a significant 6.5% increase when evaluated in constant currency.

Despite a minor dip of 1.1% year-over-year in organic revenue growth when examined in Euro terms, the figures reveal a robust growth of 4.8% in terms of constant currency. The company's gross profit also showed positive signs, increasing from €75.5 million in Q1 2025 to €77.4 million in Q1 2026, resulting in a gross margin improvement from 30.6% to 31.2%.

Furthermore, Nagarro's Adjusted EBITDA rose to €31.2 million, showing a growth of €1.0 million from the previous year, with its margin slightly up to 12.6% of revenue. Total EBITDA saw a larger increase of €5.7 million, reaching €38.8 million this quarter, attributed mainly to an increase in income from share-based payment arrangements.

Nagarro also reported a significant increase in net profit, climbing by €7.9 million to reach €19.2 million in Q1 2026, compared to €11.2 million in Q1 2025. This growth reflects the company's upward trajectory and strong market performance amid competitive landscapes.

In terms of clientele, the number of clients generating over €1 million in revenue over the last twelve months stood at 179 for this quarter, down from 186 in Q1 2025. This decrease is mainly attributed to the completion of multiple implementation-led projects that transitioned into stable managed services.

However, operating cash flows showcased a decline, decreasing to negative €0.3 million from a positive €37.5 million in Q1 2025. This decline was largely due to an increase in working capital amounting to €32.4 million. Additionally, the utilization of factoring under the non-recourse program saw a slight decrease of €0.2 million year-over-year.

Regarding the company's liquidity, Nagarro ended March 31, 2026, with a cash balance of €112.6 million, down from €124.6 million at the end of December 31, 2025. The company's loans and borrowings remained relatively stable with total liabilities of €310.9 million compared to €310.1 million in the previous quarter.

In a statement addressing these results, Manas Human, co-founder and CEO of Nagarro, noted, "Our year-over-year growth in Q1 aligns with our expectations. We continue to advance our standing as a leader in AI transformation and engineering, enhancing our advisory capabilities to build trust as a partner for our clients' AI journeys."

Looking ahead, Nagarro is poised to maintain its growth trajectory. The upcoming earnings call on May 15, 2026, will further elaborate on the company’s performance and future strategies. Interested parties can register in advance to attend and gain deeper insights into Nagarro's business outlook.

In summary, Nagarro's Q1 2026 performance reflects a blend of steady revenue growth, solid profit margins, and strategic progression in the AI transformation sector, setting a promising foundation for the rest of the fiscal year.

For more details, visit Nagarro.