Operating profit was flat at EUR 56.5 million against a court-ruling comparison, and about 64% higher without it 18. Organic growth fell 11%, and the full-year outlook is now -6% to -5% organic growth with a 15.5-16.0% adjusted EBITA margin 4.
TietoEVRY Oyj · Q3 2026 · Reported 27 Oct 2026 · Nordic
Key figures
Million EUR | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
Revenue | 389.60 | 454.20 | -14.2 % |
Operating profit | 56.50 | 56.50 | +0.0 % |
Net income | 40.70 | 34.90 | +16.6 % |
Operating margin | 14.5 % | 12.4 % | +2.1 pp |
Net margin | 10.4 % | 7.7 % | +2.8 pp |
Figures in EUR, as reported. Margins are computed from the reported lines.
Flat operating profit hides a sharp underlying gain against a court-ruling comparison
Operating profit was EUR 56.5 million, unchanged from a year earlier, on revenue that fell 14.2% to EUR 389.6 million 18. The year-earlier quarter included EUR 22 million of additional revenue from a court ruling in Tietoevry Banking, which also lifted that quarter's profit 8. Excluding that item, operating profit rose 63.8% and operating margin was 14.5% against 7.6%, versus 14.5% against 12.4% as reported 1824. This is our calculation that removes one item, not a company figure.
The company-defined adjusted EBITA was EUR 70.2 million against EUR 87.8 million, a margin of 18.0% against 19.3% 8. Management says the court ruling added 4 percentage points to the 2025 margin 6.
Organic revenue fell 11%, with Tech Consulting and Banktech the main drags
Organic growth was -11%, of which 7 percentage points came from known headwinds: 5 from the court-ruling comparison and 2 from legacy contracts 5. Divestments cut reported growth by 6 percentage points and exchange rates added 2 8. Banktech's organic growth was -18%, but management says its underlying revenue was at the prior-year level 6.
Tech Consulting revenue fell to EUR 152.7 million from EUR 187.8 million, with organic growth of -11% 8. Management attributes this to soft demand and project postponements in parts of the consulting market 96. The order backlog was down 2% organically from a year earlier and down 6% from the previous quarter 14.
Cost optimization carried the margin, and the programme is nearly complete
Employee benefit expenses fell to EUR 203.2 million from EUR 246.7 million, and personnel fell to 12,599 from 14,693 418. The cost programme had reached EUR 125 million of annualized savings against a EUR 130 million year-end target 5. Management says the programme and high utilization in Tech Consulting drove profitability 6.
Restructuring costs were EUR 3.0 million against EUR 20.8 million a year earlier 32. Management still raised its full-year one-time cost expectation to about 2% of revenue from 1.5%, citing further delivery capacity optimization 14. Tech Consulting's adjusted EBITA margin rose to 15.6% from 13.1%, though its adjusted EBITA fell to EUR 23.8 million from EUR 24.6 million 8.
Net income rose on lower tax and financing costs while operating cash flow fell
Net income from continuing operations rose 16.6% to EUR 40.7 million, while profit before taxes moved only to EUR 49.8 million from EUR 48.2 million 34. Income taxes were EUR 9.1 million against EUR 13.3 million, and net financial expenses were EUR 6.7 million against EUR 8.3 million 34. EPS was EUR 0.37 against EUR 0.29, with average basic shares at 111.3 million against 118.4 million after buybacks 431.
Operating cash flow was EUR 2.8 million against EUR 44.7 million, and the comparative includes cash flow from divested businesses 8. Net working capital rose EUR 56.5 million against EUR 51.6 million, and net financial expenses paid were EUR 11.9 million against EUR 2.8 million 8. Share repurchases took EUR 81.1 million in the quarter 21. Net debt was EUR 490.6 million against EUR 551.9 million a year earlier, and net debt/EBITDA was 1.3 against 2.4 32. Net debt was above the EUR 388.8 million at the end of the prior quarter 34.
What to watch next
Guidance: full-year organic growth of -6% to -5% (revenue in 2025: EUR 1,852.3 million) and adjusted EBITA margin of 15.5-16.0%, against 13.8% in 2025 4.
Q4 adjusted margin by segment against Q4 2025: Tech Consulting at or below, Banktech below, Caretech at or above, Indtech above 9101112.
Whether the planned hiring of up to 1,000 AI and data consultants and the software backlog turn into growth, given management expects consulting growth to remain weak and a solid organic growth year in 2027 5.
Sources
Produced by Clarifo Research with the Clarifo financial research engine from the company's public filings. AI was used in parts of the analysis and drafting. Figures are checked automatically against the filings they come from. This is not investment advice.