Nagarro Reports Strong Q1 2026 Results with 6.5% Revenue Growth
On May 15, 2026, Nagarro, an international player in AI transformation and engineering, revealed its preliminary financial figures for the first quarter of 2026. The company's revenue climbed to €248.1 million, witnessing an increase of 0.9% compared to the previous quarter and a year-on-year rise of 0.5%. When adjusted for currency fluctuations, the year-on-year growth stands at a notable 6.5%.
The first quarter also showed an organic revenue decrease of 1.1%, yet it was compensated by a positive performance of 4.8% in constant currency terms. Additionally, the gross profit increased by 2.4%, reaching €77.4 million, with the gross margin rising from 30.6% in Q1 2025 to 31.2% in Q1 2026. These figures indicate a solid operational efficiency and effective cost management strategies being implemented across the board.
Significantly, the adjusted EBITDA for the quarter rose to €31.2 million, up from €30.2 million year-on-year, translating to an adjusted EBITDA margin of 12.6%. The overall EBITDA experienced a substantial increase to €38.8 million, representing a 17.4% rise from €33.0 million in the same quarter last year. This improvement is largely attributed to the relative increase in earnings from the reversal of expenses related to stock-based payment agreements.
The EBIT also reflected strong growth, climbing from €24.1 million in Q1 2025 to €30.0 million in Q1 2026, an impressive increase of 24.6%. The net profit surged by 70.7%, from €11.2 million in the prior year to €19.2 million in the latest quarter, showcasing not only growth in revenue but also superior cost control efforts.
Despite the positive revenue growth, Nagarro saw a decrease in the number of clients generating over €1 million in revenue from 186 to 179 year-on-year. Chief Executive Officer Manas Human noted this change as part of the ongoing shifts in client engagements, emphasizing that completed pilot programs have transitioned into stable and recurring service commitments.
Interestingly, the operational cash flow reported a notable decline, showing -€0.3 million compared to €37.5 million in the previous year. This drop is mainly attributed to an increase in working capital requirements, highlighting the evolving operational dynamics within the company.
On the financial front, Nagarro's total cash balance at the end of March 2026 was €112.6 million, a decrease from €124.6 million at the end of December 2025, reflecting strategic investments and operational cash management. The company's borrowings slightly increased from €310.1 million to €310.9 million during the same period.
In terms of workforce, Nagarro added 540 net professionals in Q1 2026, bringing the total employee count to approximately 18,543. This growth indicates a commitment to enhancing its talent pool to meet increasing client demands.
Looking forward, Nagarro aims to strengthen its consulting capabilities further to establish itself as a trusted partner in AI transformation initiatives for its clients. The company's Q1 2026 results reaffirm its business strategy and solid position in the competitive landscape of AI and engineering services.
A conference call to discuss these results in greater detail is scheduled for May 15, 2026, at 1:00 PM CEST, providing additional insights into Nagarro's strategic direction and future outlook. Participants can register for the call via the investor relations section of Nagarro's website.
For those interested in further details, Nagarro, known for its agile and entrepreneurial culture, operates in 40 countries and employs a workforce driven by a well-defined vision of fluid intelligence and client-oriented services.
The first quarter also showed an organic revenue decrease of 1.1%, yet it was compensated by a positive performance of 4.8% in constant currency terms. Additionally, the gross profit increased by 2.4%, reaching €77.4 million, with the gross margin rising from 30.6% in Q1 2025 to 31.2% in Q1 2026. These figures indicate a solid operational efficiency and effective cost management strategies being implemented across the board.
Significantly, the adjusted EBITDA for the quarter rose to €31.2 million, up from €30.2 million year-on-year, translating to an adjusted EBITDA margin of 12.6%. The overall EBITDA experienced a substantial increase to €38.8 million, representing a 17.4% rise from €33.0 million in the same quarter last year. This improvement is largely attributed to the relative increase in earnings from the reversal of expenses related to stock-based payment agreements.
The EBIT also reflected strong growth, climbing from €24.1 million in Q1 2025 to €30.0 million in Q1 2026, an impressive increase of 24.6%. The net profit surged by 70.7%, from €11.2 million in the prior year to €19.2 million in the latest quarter, showcasing not only growth in revenue but also superior cost control efforts.
Despite the positive revenue growth, Nagarro saw a decrease in the number of clients generating over €1 million in revenue from 186 to 179 year-on-year. Chief Executive Officer Manas Human noted this change as part of the ongoing shifts in client engagements, emphasizing that completed pilot programs have transitioned into stable and recurring service commitments.
Interestingly, the operational cash flow reported a notable decline, showing -€0.3 million compared to €37.5 million in the previous year. This drop is mainly attributed to an increase in working capital requirements, highlighting the evolving operational dynamics within the company.
On the financial front, Nagarro's total cash balance at the end of March 2026 was €112.6 million, a decrease from €124.6 million at the end of December 2025, reflecting strategic investments and operational cash management. The company's borrowings slightly increased from €310.1 million to €310.9 million during the same period.
In terms of workforce, Nagarro added 540 net professionals in Q1 2026, bringing the total employee count to approximately 18,543. This growth indicates a commitment to enhancing its talent pool to meet increasing client demands.
Looking forward, Nagarro aims to strengthen its consulting capabilities further to establish itself as a trusted partner in AI transformation initiatives for its clients. The company's Q1 2026 results reaffirm its business strategy and solid position in the competitive landscape of AI and engineering services.
A conference call to discuss these results in greater detail is scheduled for May 15, 2026, at 1:00 PM CEST, providing additional insights into Nagarro's strategic direction and future outlook. Participants can register for the call via the investor relations section of Nagarro's website.
For those interested in further details, Nagarro, known for its agile and entrepreneurial culture, operates in 40 countries and employs a workforce driven by a well-defined vision of fluid intelligence and client-oriented services.
Topics Business Technology）
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