Nagarro releases unaudited Q3 2026 results, posts 2.7% constant currency growth for 9 months ended September 2026
MUNICH, Nov. 13, 2026 /PRNewswire/ -- Nagarro, a global AI-native engineering and transformation leader, presented its unaudited financial numbers for 9M 2026 and 3M 2026, and released its quarterly statement for Q3 2026.
In 9M 2026, revenue grew to €755.5 million from €753.4 million in 9M 2025. On a constant currency basis, revenue growth was 2.7% YoY, which translated to a growth of 0.3% YoY in Euro terms. Organic YoY revenue growth for 9M 2026 was 1.2% YoY in constant currency, which translated to negative 1.2% YoY in Euro terms. Gross profit was flat at €243.1 million (32.2% of revenue) in 9M 2026 from €243.5 million (32.3% of revenue) in 9M 2025. Adjusted EBITDA grew to €107.3 million (14.2% of revenue) in 9M 2026 from €104.8 million (13.9% of revenue) in 9M 2025.
EBITDA declined to €99.0 million in 9M 2026 from €108.5 million in 9M 2025. EBITDA decreased mainly because of an increase in net expense from special items by €12.1 million (mainly due to increase in expense of share-based payment arrangements of €14.4 million which has been partly offset by decrease in investigation expenses by €1.1 million and absence of additional audit fees of €1.3 million). This has been offset by increase in adjusted EBITDA by €2.5 million. Our most significant adjustments to EBITDA in 9M 2026 are the expense of share-based payment arrangements amounting to €5.1 million and expenses related to the public takeover offer amounting to €1.8 million. Consequently, EBIT also declined to €73.0 million in 9M 2026 from €82.3 million in 9M 2025. Overall, net profit grew to €42.5 million in 9M 2026 from €41.0 million in 9M 2025 mainly due to decrease in YoY withholding taxes on intra-group dividends.
Operating cash flow (OCF) in 9M 2026 increased slightly to €77.7 million from €77.1 million in 9M 2025. OCF adjusted for changes in factoring was €85.0 million in 9M 2026 as compared to €81.0 million in 9M 2025.
The summarized table for the nine-month period ended September 30, 2026, is as follows:
9M 2026 | 9M 2025 | Growth | ||||
mEUR | mEUR | |||||
Revenue | 755.5 | 753.4 | 0.3% YoY; 2.7% YoY in constant currency | |||
Gross profit | 243.1 | 243.5 | Negative 0.1% YoY | |||
Gross margin | 32.2 % | 32.3 % | ||||
Adjusted EBITDA | 107.3 | 104.8 | 2.4% YoY | |||
Adjusted EBITDA margin | 14.2 % | 13.9 % | ||||
EBITDA | 99.0 | 108.5 | Negative 8.8% YoY | |||
EBIT | 73.0 | 82.3 | Negative 11.3% YoY | |||
Net profit | 42.5 | 41.0 | 3.8% YoY | |||
3M results
In Q3 2026, revenue grew to €255.0 million, up from €254.6 million in Q3 2025. On a constant currency basis, revenue was flat at negative 0.2% YoY, which translated to a growth of 0.2% YoY in Euro terms. Organic YoY revenue growth for the quarter was negative 1.6% YoY in constant currency, which translated to a growth of negative 1.2% YoY in Euro terms. Gross profit was flat at €83.9 million (32.9% of revenue) in Q3 2026 from €84.2 million (33.1% of revenue) in Q3 2025. Adjusted EBITDA declined to €38.3 million (15.0% of revenue) in Q3 2026 from €44.0 million (17.3% of revenue) in Q3 2025.
EBITDA declined to €32.5 million in Q3 2026 from €43.5 million in Q3 2025. EBITDA decreased mainly because of a decrease in adjusted EBITDA by €5.8 million and increase in net expense from special items by €5.2 million (mainly due to YoY increase in expense of share-based payment arrangements of €6.4 million which has been partly offset by absence of investigation expenses amounting to €1.0 million). Our net adjustment to EBITDA in Q3 2026 is an expense of €5.8 million. The most significant adjustments are the expense of share-based payment arrangements amounting to €4.6 million and expenses related to the public takeover offer amounting to €0.9 million. Consequently, EBIT also declined to €23.8 million in Q3 2026 from €34.9 million in Q3 2025. This decrease in EBIT was partly offset by decrease in income tax expense of €3.1 million, resulting in decrease in net profit to €12.7 million in Q3 2026 from €21.4 million in Q3 2025.
The number of clients generating revenue of more than €1 million in the last 12 months rose from 184 as of June 30, 2026 to 186 on September 30, 2026.
OCF in Q3 2026 increased to €48.2 million from €34.7 million in Q3 2025 primarily due to better collections from customers and lower taxes paid on intra-group dividends.
Days of sales outstanding (DSO), calculated based on the quarterly revenue and including both contract assets and trade receivables, has improved from 82 days on December 31, 2025, to 80 days on September 30, 2026.
Nagarro's cash and cash equivalents remained almost stable at €124.3 million as of September 30, 2026, compared to €124.6 million as of December 31, 2025. Nagarro's loans and borrowings as of September 30, 2026, were €278.0 million, as against €310.1 million as of December 31, 2025, mainly because of repayment of syndicated Revolving Credit Facility. The company reported 18,499 professionals as of September 30, 2026.
The summarized table for the three-month period ended September 30, 2026, is as follows:
Q3 2026 | Q3 2025 | Growth | ||||
mEUR | mEUR | |||||
Revenue | 255.0 | 254.6 | 0.2% YoY; Negative 0.2% YoY in constant currency | |||
Gross profit | 83.9 | 84.2 | Negative 0.3% YoY | |||
Gross margin | 32.9 % | 33.1 % | ||||
Adjusted EBITDA | 38.3 | 44.0 | Negative 13.1% YoY | |||
Adjusted EBITDA margin | 15.0 % | 17.3 % | ||||
EBITDA | 32.5 | 43.5 | Negative 25.2% YoY | |||
EBIT | 23.8 | 34.9 | Negative 31.6% YoY | |||
Net profit | 12.7 | 21.4 | Negative 40.5% YoY | |||
About Nagarro
Nagarro is a global AI-native engineering and transformation company that engineers intelligence into enterprises securely, responsibly, and at scale. Distinguished by its entrepreneurial, agile, and global character, Nagarro is guided by its CARING values. Nagarro employs around 18,500 people in 39 countries. For more information, visit www.nagarro.com.
(FRA: NA9) (ISIN: DE000A3H2200) (WKN: A3H220)
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