Endava Shares Surge 6% Following Q4 Beat

• Endava PLC (NYSE:DAVA) stock price has experienced a significant drop of 30.81% this week.
• The downturn is attributed to disappointing fourth-quarter 2025 financial results, leading to a decline in investor confidence.
• Despite a volatile market, Endava's stock shows a slight increase of 1.76% today, with a current price of $10.15.

Endava PLC (NYSE:DAVA) is a technology company that provides digital transformation services. It helps businesses improve their operations through technology solutions. Endava competes with other tech service providers like Accenture and Cognizant. On September 5, 2025, Cowen & Co. maintained its "Hold" rating for Endava, with the stock priced at $10.19.

Recently, Endava's stock price has seen a significant drop of 30.81% this week. This decline comes after a 14.7% increase in August. The downturn is due to disappointing fourth-quarter 2025 financial results, which led investors to sell their shares. Despite beating analysts' expectations on the bottom line, concerns about declining free cash flow and the company's future outlook have affected investor confidence.

Endava's stock has fallen 32.1% from the end of last Friday's trading session through Thursday's market close, as highlighted by S&P Global Market Intelligence. The stock is currently priced at $10.15, showing a slight increase of 1.76% or $0.18. Today, the stock has fluctuated between $10.01 and $10.29, indicating some volatility in the market.

Over the past year, DAVA has experienced a high of $34.94 and a low of $9.84. The company's market capitalization is approximately $593.1 million, with a trading volume of 1,119,920 shares on the NYSE. Despite past success in growing cash flow from fiscal years 2021 through 2023, recent results have not met investor expectations, contributing to the stock's decline.

• Endava plc (NYSE:DAVA) reported earnings per share of $0.329, surpassing estimates but experienced a 4% decrease in revenue year over year.
• The company's stock value has plummeted by more than 80% since early 2024, largely due to guidance not meeting investor expectations.
• Despite financial stability indicators like a debt-to-equity ratio of 0.29 and a current ratio of 2.18, DAVA set its full-year fiscal 2026 revenue and earnings targets below expectations.

Endava plc (NYSE:DAVA) is a British tech consultancy specializing in modernizing IT systems for large corporations. Despite its expertise, the company has faced challenges in the stock market. DAVA's shares have dropped by over 30%, and its stock value has plummeted by more than 80% since early 2024. This decline is mainly due to guidance that did not meet investor expectations.

On September 4, 2025, DAVA reported earnings per share of $0.329, surpassing the estimated $0.32. The company achieved a revenue of approximately $256.3 million, significantly exceeding the estimated $184 million. However, despite these positive results, the company's revenue decreased by 4% year over year, and its workforce was reduced by 5%. This indicates that while DAVA exceeded Wall Street's earnings-per-share estimate, it still faces challenges in maintaining consistent growth.

The company's recent earnings call featured key participants, including CEO John Cotterell and CFO Mark Thurston. Analysts from major financial institutions attended the call, highlighting the importance of DAVA's financial performance. Despite the positive earnings surprise, the company set its full-year fiscal 2026 revenue and earnings targets below expectations. CEO John Cotterell remains optimistic, attributing the challenges to a difficult macroeconomic environment.

DAVA's financial metrics provide insight into its current valuation. The company has a price-to-earnings (P/E) ratio of approximately 24.05, indicating the price investors are willing to pay for each dollar of earnings. Its price-to-sales ratio stands at about 0.56, suggesting that the market values the company's sales at just over half of its current market price. Additionally, the enterprise value to sales ratio is approximately 0.71, reflecting the company's total valuation relative to its sales.

Despite the challenges, DAVA maintains a relatively low level of debt compared to its equity, with a debt-to-equity ratio of about 0.29. The current ratio is approximately 2.18, indicating good short-term financial health. These metrics suggest that while DAVA faces hurdles in meeting investor expectations, it remains financially stable in the short term.

Harry Read of Redburn Partners has recently set a price target of $33.1 for Endava (NYSE:DAVA), suggesting a potential upside of approximately 6.84% from its current price of $30.98. This valuation comes at a crucial time for Endava, a company that has been navigating the volatile tech sector landscape. Endava specializes in digital transformation, agile development, and cloud services, positioning itself as a key player among global IT service providers. Competing in a market that includes giants like Accenture and Cognizant, Endava's performance and future prospects are of significant interest to investors and analysts alike.

The price target announcement follows closely on the heels of Endava's Q3 2024 Earnings Conference Call, which featured discussions led by key company figures including CEO John Cotterell and CFO Mark Thurston. The call highlighted the company's strategic direction and financial performance, drawing attention from analysts across major firms. This level of interest from the investment community underscores Endava's market position and the potential for growth, aligning with Redburn Partners' optimistic outlook.

During the earnings call, Endava reported a stock price increase of 6.06% to $30.98, marking a significant movement within the trading session. The stock's performance, fluctuating between a low of $30.545 and a high of $33.31, reflects the dynamic nature of the market and investor sentiment towards the company. Over the past year, DAVA's stock has seen a wide range of prices, from a low of $28.13 to a high of $81.06, indicating the volatility and the opportunities within the tech sector.

With a market capitalization of approximately $1.65 billion and a trading volume of 1,585,469 shares on the NYSE, Endava's financial metrics provide a solid foundation for Redburn Partners' price target. The company's ability to navigate market challenges and capitalize on digital transformation trends is crucial for its continued growth and relevance in the competitive IT services industry.

The analysis by Harry Read and the subsequent earnings call both highlight Endava's potential for growth and the keen interest from the investment community. As the company continues to execute its strategic initiatives, the set price target of $33.1 reflects a cautiously optimistic view of its ability to achieve further upside in the near future.

Endava (NYSE:DAVA) shares rose more than 15% on Tuesday following the company’s reported strong Q3 results. EPS came in at £0.54, better than the Street estimate of £0.51, as the company continues to see sustained demand for digital transformation services, despite continued supply constraints and numerous macro headwinds, particularly in the UK. Revenue grew 33% year-over-year to £196.2 million, beating the Street estimate of £186.16 million.

While concerns around a potential macro slowdown and pullback in corporate spending will continue to linger, analysts at Deutsche Bank mentioned they are impressed by the company’s strong organic revenue growth profile and the company noted that it has seen revenue growth across all of its geographies.

Based on the continued demand for the company’s digital services and its increased guidance, analysts raised their 2023 EPS by £0.02 to £2.39 and their 2024/2025 EPS by £0.07/£0.08 to £2.99/£3.69.

Endava (NYSE:DAVA) shares rose more than 15% on Tuesday following the company’s reported strong Q3 results. EPS came in at £0.54, better than the Street estimate of £0.51, as the company continues to see sustained demand for digital transformation services, despite continued supply constraints and numerous macro headwinds, particularly in the UK. Revenue grew 33% year-over-year to £196.2 million, beating the Street estimate of £186.16 million.

While concerns around a potential macro slowdown and pullback in corporate spending will continue to linger, analysts at Deutsche Bank mentioned they are impressed by the company’s strong organic revenue growth profile and the company noted that it has seen revenue growth across all of its geographies.

Based on the continued demand for the company’s digital services and its increased guidance, analysts raised their 2023 EPS by £0.02 to £2.39 and their 2024/2025 EPS by £0.07/£0.08 to £2.99/£3.69.

Endava (NYSE:DAVA) shares were trading more than 6% higher Wednesday afternoon following the company’s reported Q4 results, with EPS of £0.51 coming in better than the Street estimate of £0.49. Revenue was £180.4 million, compared to the Street estimate of £178.35 million.

The company continues to benefit from sustained demand for digital transformation which continues to outweigh macro headwinds and supply constraints.

Even as concerns linger around a potential macro slowdown, the analysts at Deutsche Bank mentioned that the demand for the company continues to post impressive organic revenue growth and noted that it has not seen any operational slowdown from client behavior.

However, the analysts mentioned that higher costs and lower utilization have impacted margins. They lowered their price target on the company’s shares to $78 from $94, while reiterating their hold rating.