DAVA Stock Forecast & Price Target

Endava has demonstrated resilience with a sequential headcount increase of 1%, indicative of the company's commitment to investing in AI initiatives, which is expected to drive future growth. The incorporation of mergers and acquisitions has contributed approximately 100 basis points to year-over-year growth, further enhancing the company’s growth trajectory. With a strong focus on digital transformation and anticipated improvements in demand from key verticals, Endava is positioned to capitalize on a cyclical recovery and potentially achieve over 20% organic growth in the long term.

Endava's recent financial performance indicates a concerning trend, with F4Q25 revenue falling below management's forecast and reflecting a decline in client spending, particularly in key segments such as payments and telecom. The company's FY26 revenue growth outlook is likewise pessimistic, projecting a decline of 1.5% to growth of only 0.5% year-over-year, compounded by a forecasted revenue decline of approximately 2% quarter-over-quarter in F1Q26. Additionally, Endava's revenue has exhibited significant decreases in its North American and European markets, indicating broader challenges ahead as clients continue to delay projects amidst rising operational costs.