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Nagarro's Financial Performance in Q2 and H1 2026

Nagarro, a global leader in AI transformation and engineering, has unveiled its unaudited financial results for the second quarter and first half of 2026, highlighting promising revenue growth in constant currency. As the company continues to navigate the challenges posed by the evolving market landscape, these results reflect its ongoing commitment to innovation and operational excellence.

Q2 2026 Results at a Glance

For the second quarter of 2026, Nagarro reported a revenue of €252.4 million, a slight increase from €252.0 million in the same period last year. This translates to a 2.0% growth in constant currency, while the year-over-year growth in euros was marginal at 0.2%. The company experienced an organic revenue growth of 0.6% in constant currency, albeit reflecting a 1.1% decrease when converted to euros.

Key Metrics:

• - Gross Profit: €81.8 million (down from €83.7 million in Q2 2025)
• - Gross Margin: 32.4% (compared to 33.2% last year)
• - Adjusted EBITDA: €37.8 million with a margin of 15.0%, a significant rise from €30.5 million (12.1% margin) a year earlier.
• - EBITDA: Decreased to €27.7 million from €32.0 million.
• - Net Income: Rose to €10.6 million from €8.3 million, largely due to the reduction of withholding tax expenses related to internal dividends.

As for its client base, Nagarro reported an increase in the number of clients generating over €1 million in revenue over the past twelve months, climbing from 179 clients at the end of March to 184 by June 30, 2026.

First Half of 2026 Highlights

In the first half of 2026, the overall revenue increased to €500.5 million from €498.9 million in the first half of 2025, marking a 4.2% growth in constant currency and a more modest 0.3% increase in euros. Organic revenue growth stood at 2.7% in constant currency, but when converted to euros, it reflected a decline of 1.1%.

H1 Key Performance Indicators:

• - Gross Profit: Remained fairly stable at €159.2 million compared to €159.3 million last year, indicating a gross margin of 31.8%.
• - Adjusted EBITDA: Grew to €69.1 million (13.8% margin), a rise from €60.8 million (12.2% margin) in H1 2025.
• - EBITDA: Slightly increased to €66.5 million from €65.0 million.
• - EBIT: Also saw an uptick to €49.2 million, compared to €47.5 million.
• - Net Income: A significant boost to €29.8 million from €19.6 million, reflecting a 52.0% increase year-over-year.

Nagarro's operational cash flow, however, decreased from €42.4 million in H1 2025 to €29.5 million in H1 2026, attributed to delayed payments from some clients, with expectations for their receipt in Q3 2026.

Cash Position and Workforce

As of June 30, 2026, Nagarro reported cash reserves of €131.3 million, up from €124.6 million at the end of 2025. The company’s financial liabilities remained stable at €310.5 million, slightly up from €310.1 million. Moreover, Nagarro employed a total of 18,711 personnel as of June 30, 2026.

Looking Ahead

Nagarro is scheduled to hold an earnings call on August 14, 2026, to discuss these financial results further. This call will provide an opportunity for investors and analysts to gain deeper insights into the company’s strategic direction and outlook for the coming quarters.

As Nagarro continues to embrace the complexities of AI-driven transformation, its financial performance reflects a resilience that upholds its mission to deliver superior value to its clients and stakeholders in an ever-competitive landscape. For more information, visit Nagarro’s website.