
DAVA Stock Forecast & Price Target
DAVA Analyst Ratings
Bulls say
Endava's recent performance highlights a 5% sequential revenue increase in North America, buoyed by the reclassification of a significant payments client, which underscores the company's strong positioning within the financial services sector. The firm's commitment to investing in AI initiatives is illustrated by a 1.4% sequential increase in headcount, reflecting the ongoing demand for digital transformation services. Positive growth projections suggest that as AI adoption among global enterprises accelerates and economic conditions improve, Endava is well-positioned for long-term double-digit organic growth bolstered by new client acquisitions and expanded projects with existing customers.
Bears say
Endava reported a significant decline in its 1Q FY26 revenue, which totaled £178.2 million, reflecting an 8.6% year-over-year decrease and a 4.6% quarter-over-quarter drop, with both gross and operating margins falling below expectations. The company has lowered its FY26 revenue guidance to between £735 million and £752 million, citing unexpected client credit issues and subdued demand leading to a weaker pipeline conversion. Additionally, increased operational costs from headcount increases related to AI investments further exacerbate concerns about growth and margin pressures, contributing to the negative outlook for the company's stock performance.
This aggregate rating is based on analysts' research of Endava plc - ADR and is not a guaranteed prediction by Public.com or investment advice.
DAVA Analyst Forecast & Price Prediction
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