Nagarro Reports Second Quarter and First Half 2026 Revenue Growth Amidst Challenging Market Conditions

Nagarro's Financial Performance in Q2 and H1 2026

Nagarro has announced its unaudited financial results for the second quarter (Q2) and the first half (H1) of 2026, with a reported revenue growth of 2.0% year-on-year at constant currency. In euros, revenue increased from €252 million in Q2 2025 to €252.4 million in Q2 2026, reflecting a marginal growth rate of 0.2% in the local currency.

Detailed Financial Breakdown

In the detailed results, Nagarro's gross profit for Q2 amounted to €81.8 million, accounting for 32.4% of the total revenue, slightly down from €83.7 million (33.2% of revenue) in the same period of the previous year. The adjusted EBITDA, a critical marker of operational profitability, increased to €37.8 million (15.0% of revenue) in Q2 2026 from €30.5 million (12.1% of revenue) in Q2 2025.

However, regular EBITDA saw a decline to €27.7 million, down from €32.0 million a year prior, influenced by an increase in stock-based compensation expenses which soared to €12 million in Q2 2026. The net profit for the quarter showed a positive shift, rising to €10.6 million from €8.3 million a year before, mainly due to the absence of tax charges related to intra-group dividend withholding.

Further, by the end of June 2026, the total number of clients contributing over €1 million in revenue over the past 12 months rose to 184, improving from 179 clients reported on March 31, 2026.

First Half Results

For the first half of 2026, Nagarro's revenue totaled €500.5 million, compared to €498.9 million during the same period in 2025, showcasing a growth of 0.3% in euros and a more substantial 4.2% at constant currency rates. The organic revenue growth for H1 registered at 2.7% in constant currency, but showed a decline of 1.1% when considered in euros.

The gross margin remained stable, totaling €159.2 million (31.8% of revenue), slightly dipping from €159.3 million (31.9% of revenue) in H1 2025. Adjusted EBITDA for the half-year reached €69.1 million (13.8% of revenue), comparing favorably to €60.8 million (12.2% of revenue) in the previous year.

A notable increase was seen in net income, which surged to €29.8 million compared to €19.6 million in H1 2025, indicating the company's effective cost management and operational efficiency.

Cash Flow and Operational Efficiency

Operating cash flow for Q2 2026 rose substantially to €29.8 million, a stark increase from €4.9 million in Q2 2025, due to improved collection of receivables. However, cash flows for the half-year dwindled to €29.5 million from €42.4 million in H1 2025, primarily attributable to pending receivables that are anticipated to be collected in Q3 2026.

The company's cash reserves stood at €131.3 million on June 30, 2026, up from €124.6 million at year-end 2025. Nagarro's debts remained nearly constant, totaling €310.5 million at mid-2026.

Future Outlook and Conference Call

The company has scheduled its earnings call for August 14, 2026, to discuss these results in greater detail and outline its strategic vision for the upcoming quarters. Nagarro, a global leader in AI engineering and transformation, remains committed to integrating AI responsibly across enterprises while upholding its core values of caring and entrepreneurship.

Nagarro employs around 18,700 professionals across 39 countries, aiming to further enhance its market position as it navigates the complexities of the current economic landscape. Visit Nagarro's website for more insights and updates.