Nagarro's Third Quarter 2026 Revenue Grows by 2.7% Driven by AI Engineering Transformation
As a prominent player in AI engineering and transformation, Nagarro recently disclosed its unaudited financial results for the third quarter of 2026. Spanning the first nine months, the data reveals a notable revenue growth of 2.7% at constant exchange rates compared to the previous year. The company reported earnings of €755.5 million, slightly up from €753.4 million in the same period of 2025. While the nominal revenue showcased a modest increase of 0.3%, the organic year-over-year revenue growth stood at 1.2% in constant currency, despite a decline of 1.2% when measured in euros.
The gross profit for Nagarro remained largely unchanged, totaling €243.1 million, which represents a gross margin of 32.2%, slightly lower than the 32.3% margin observed in the same nine-month period of 2025. Adjusted EBITDA saw an increase to €107.3 million, reflecting 14.2% of total revenue, marking a rise from 13.9% the previous year. However, the overall EBITDA experienced a decrease to €99.0 million, down from €108.5 million year-over-year, primarily due to increased exceptional costs amounting to €12.1 million. This surge in costs was attributed mainly to heightened share-based payment expenses.
In terms of performance for Q3 alone, Nagarro's revenue reached €255 million, a slight rise over the €254.6 million reported a year prior. The organic revenue growth for this quarter revealed a decrease of 1.6% at constant exchange rates. Gross profit in Q3 similarly held steady at €83.9 million, maintaining a gross margin of 32.9%.
Despite the challenges, the company's net profit showed a marginal increase, with figures rising to €42.5 million for the first three quarters of 2026 from €41 million in 2025. The operational cash flow improved as well, hitting €77.7 million compared to €77.1 million in the previous year, partly due to better client collections.
Nagarro's workforce as of September 30, 2026, comprised approximately 18,500 employees spread across 39 countries. The company’s focus on ethical and responsible AI integration into businesses remains a cornerstone of its operations. The results portray Nagarro's robust growth trajectory, positioning itself as a significant force in the digital landscape of engineering and AI transformation.
For a detailed view of financial metrics, further analysis may be conducted following the release of the complete annual report. Stakeholders are encouraged to monitor Nagarro's ongoing progress as it navigates through a challenging economic environment while positioning itself for continued growth and innovation.
The gross profit for Nagarro remained largely unchanged, totaling €243.1 million, which represents a gross margin of 32.2%, slightly lower than the 32.3% margin observed in the same nine-month period of 2025. Adjusted EBITDA saw an increase to €107.3 million, reflecting 14.2% of total revenue, marking a rise from 13.9% the previous year. However, the overall EBITDA experienced a decrease to €99.0 million, down from €108.5 million year-over-year, primarily due to increased exceptional costs amounting to €12.1 million. This surge in costs was attributed mainly to heightened share-based payment expenses.
In terms of performance for Q3 alone, Nagarro's revenue reached €255 million, a slight rise over the €254.6 million reported a year prior. The organic revenue growth for this quarter revealed a decrease of 1.6% at constant exchange rates. Gross profit in Q3 similarly held steady at €83.9 million, maintaining a gross margin of 32.9%.
Despite the challenges, the company's net profit showed a marginal increase, with figures rising to €42.5 million for the first three quarters of 2026 from €41 million in 2025. The operational cash flow improved as well, hitting €77.7 million compared to €77.1 million in the previous year, partly due to better client collections.
Nagarro's workforce as of September 30, 2026, comprised approximately 18,500 employees spread across 39 countries. The company’s focus on ethical and responsible AI integration into businesses remains a cornerstone of its operations. The results portray Nagarro's robust growth trajectory, positioning itself as a significant force in the digital landscape of engineering and AI transformation.
For a detailed view of financial metrics, further analysis may be conducted following the release of the complete annual report. Stakeholders are encouraged to monitor Nagarro's ongoing progress as it navigates through a challenging economic environment while positioning itself for continued growth and innovation.
Topics Business Technology）
【About Using Articles】
You can freely use the title and article content by linking to the page where the article is posted.
※ Images cannot be used.
【About Links】
Links are free to use.