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Nagarro's Impressive Financial Performance in Q2 and H1 2026

On August 14, 2026, Nagarro, a prominent player in AI transformation and engineering, unveiled its financial results for the second quarter (Q2) and the first half (H1) of 2026. The data reflects a positive trajectory, showcasing year-on-year revenue growth while adapting to the demands of an ever-changing market.

Q2 2026 Highlights

In Q2 2026, Nagarro reported a revenue of €252.4 million, a slight increase from the previous year's €252.0 million. Adjusted for constant currency, this represents a growth of 2.0% year-over-year. However, in Euro terms, the growth was modest at 0.2%. Notably, the quarter saw a rise in organic revenue growth, clocking in at 0.6% in constant currency, although it registered a decline of 1.1% when viewed in Euro terms.

Despite the healthy revenue figures, gross profit dipped to €81.8 million, accounting for 32.4% of total revenues, compared to €83.7 million the previous year. On a more positive note, adjusted EBITDA surged to €37.8 million, representing 15.0% of revenue – a significant rise from €30.5 million or 12.1% of revenue in Q2 2025.

Financial Challenges

However, the report was not without its challenges. EBITDA fell to €27.7 million from €32.0 million a year prior, due predominantly to a €12.0 million increase in the cost of share-based payment arrangements. As a consequence, both EBIT and EBITDA figures saw declines. Nonetheless, net profit climbed to €10.6 million, a substantial rise compared to €8.3 million in Q2 2025, benefiting from the lack of a withholding tax expense on intra-group dividends.

The number of clients contributing over €1 million in revenue over the past year also showed promise, rising to 184 from 179 as of March 31, 2026.

H1 2026 Overview

For the first half of 2026, Nagarro's revenues reached €500.5 million, a growth from €498.9 million in H1 2025. In constant currency, this showcases a 4.2% increase year-over-year, again representing 0.3% growth in Euros. Organic revenue growth for the half-year stood at 2.7% in constant currency, while Euro terms reflected a decline of 1.1%.

Gross profit and margin remained stable, with €159.2 million representing 31.8% of revenues. Adjusted EBITDA also climbed to €69.1 million, indicating a rise of 13.7% year-on-year.

Looking Ahead

As Nagarro moves forward, it aims to address the challenges related to cash inflow, which decreased to €29.5 million in H1 from €42.4 million in H1 2025, primarily due to pending collections from clients slated for Q3 2026. Despite these bumps, the company maintains a robust cash balance of €131.3 million and stable loan figures at €310.5 million.

Nagarro will be holding its earnings call to discuss the half-yearly financial report on the same day as the announcement. The company's commitment to performance and responsiveness to market fluctuations reflects its strong positioning for future growth.

In conclusion, Nagarro's latest financial report not only highlights the growing revenues but also the challenges faced in enhancing profitability and operational efficiency. As the company continues to adapt and evolve within the competitive landscape, stakeholders remain optimistic about its future trajectory.

For more information about Nagarro and its strategic initiatives, please visit Nagarro's official website.