DAVA Stock Forecast & Price Target

Endava is viewed positively because growth could recover faster than expected, driving performance above outlook and estimates as large-deal conversion accelerates during its service-offering transition. Revised FY26 estimates still imply £724mm of revenue and £0.47 of adjusted EPS, with only a 5.3% year-over-year revenue decline and sequential adjusted PBT margin expansion in F4Q26 off F3Q26’s trough, suggesting the business may be near an inflection point. That momentum could continue into FY27, where revenue is modeled at £744mm, adjusted EPS at £0.70, and constant-currency growth at 3.0%, supported by a 6.9% adjusted PBT margin as Endava benefits from its digital-transformation franchise in UK and Europe.

Endava is facing a weak fundamental setup marked by concentrated exposure to Payments and Financial Services, with Worldpay as its largest client and broad-based declines across TMT, Healthcare, Banking, Insurance, and Mobility. F3Q26 revenue of £178.5mm fell 6.4% y/y, adjusted PBT margin was only 1.8%, and adjusted diluted EPS of £0.05 lagged expectations, highlighting demand softness, elongated deal cycles, and limited operating leverage. The outlook is further pressured by an accounting investigation, delayed 4QFY26 results, UK and foreign-exchange exposure, and rising talent and geopolitical risks, while management still lacks clear visibility on a return to growth and normalized margins.