WillItSurvive
IT services and system integrators · Romania

Endava

endava.com ↗

Custom software outsourcing firm that builds and tests code for banks and enterprises.

Little protection left
Assessed 21 July 2026 · Evidence as of 21 July 2026
Not much stands between this business and its pressures.
On the recordSince 21 July 2026 · Checkable from early September 2026 · Every call on the record Checkpoint: Q4 FY2026 earnings report
The call

A shrinking IT services firm trying to rebrand AI-assisted coding as growth while its stock, guidance, and client base all keep sliding.

Endava writes custom software, tests code, and moves old systems to new platforms for banks and tech companies. This work is getting cheaper and easier because AI tools like Copilot can now write and fix code automatically, which Endava's own tests showed rejected 70% of AI suggestions initially, meaning the tool is already useful enough to cut into their business. Larger competitors like Accenture and TCS can absorb this shift better because they have more clients and services to fall back on, while Endava's revenue is already shrinking 8.4% year over year and four out of every ten dollars comes from just ten customers. The one thing that could save the picture is if Endava figures out how to use AI tools to make its engineers faster and cheaper, delivering more value to clients before those clients decide they don't need as many engineers at all.

Why
01
AI pressure: GitHub Copilot, ChatGPT/Codex, agentic coding tools. Coding automation cuts the billable hours Endava sells; its own Copilot rollout saw 70% of suggestions rejected, showing pain not payoff yet. Could AI do the core job? Yes, likely.
02
Bigger players: Accenture, TCS, Infosys, Cognizant, Wipro, Capgemini. Bigger, cheaper rivals with the same AI tools are winning the same client bids while Endava's revenue keeps shrinking. Could a giant copy it? Yes, easily.
03
What protects it. Existing contracts with banks like NatWest and Mastercard buy time, but nothing stops clients from walking at renewal.
What would change this call
Q4 FY2026 results (early Sept 2026) revenue vs prior year. Shows whether the 8.4% YoY revenue decline is stabilizing or deepening.
Any disclosed loss or reduction of a top-10 client (e.g. NatWest, Mastercard). Would confirm client concentration risk turning into actual churn.
AI-driven revenue share reported in future quarters (was 15% in Q3 FY2026). Shows whether AI-native work is growing toward offsetting core decline or plateauing.
Key numbers
  • Revenue down 8.4% YoY to £178.5M (Q3 FY2026)
  • Market cap fell from $6.39B to ~$150M (Jul 2026)
  • £364.6M goodwill impairment booked (Q3 FY2026)
Named risks
  • Revenue decline of 8.4% YoY (Q3 FY2026) with three consecutive guidance cuts. Severity: high
  • Client concentration at 40% of revenue in top 10 clients, exposing firm to single-client churn. Severity: high
  • £364.6M goodwill impairment signals management's own reduced confidence in long-term performance. Severity: high
  • Ongoing securities class action covering May 2023 to Feb 2024 period with 2026 investor-recruitment notices. Severity: medium
  • Core billable-hours engineering model directly exposed to AI coding tool displacement (Copilot, Codex). Severity: high
Rivals, as read in July 2026
RivalDirectionEvidence
EPAM Systemslosing toEPAM revenue grew 15.4% to $5.457B while Endava revenue fell 8.4% YoY, as of Q3 FY2026 (2026-03-31)
Grid Dynamicslosing toGrid Dynamics grew ~17% versus Endava's 8.4% YoY decline, reported mid-2026
Accenture, TCS, Infosys, Cognizant, Wipro, Capgeminilosing toLarge incumbents compete directly in same commodity IT-services segment with no structural barrier
Globantgaining onGlobant grew only 1.6% in 2026, a weaker comparator than EPAM or Grid Dynamics
Questions people ask
Is Endava profitable in 2026?
No. Endava posted a £372.0 million loss before tax in Q3 FY2026 (quarter ended March 31, 2026), driven by a £364.6 million non-cash goodwill impairment, versus a £13.6 million profit a year earlier, as of May 21, 2026.
Could AI replace Endava's business?
Endava's core work, custom software engineering and test automation, overlaps directly with AI coding tools. Its own Copilot rollout saw a 70% initial suggestion rejection rate (June 2026), and revenue fell 8.4% YoY in Q3 FY2026 even as AI-driven revenue grew to 15% of total.
Is Endava losing to competitors like EPAM?
Yes. EPAM grew revenue 15.4% to $5.457B and Grid Dynamics grew about 17% (as of mid-2026), while Endava's revenue declined 8.4% YoY in Q3 FY2026 (quarter ended March 31, 2026) and guidance was cut three times.
Who owns Endava plc?
Endava is publicly traded on the NYSE (ticker DAVA), with no controlling parent. Institutional investors hold about 62% and insiders about 18.8% as of June 30, 2026; market cap has fallen from roughly $6.39 billion to about $150 million.
Why did Endava stock crash in 2026?
Endava stock fell 21% on May 21, 2026 after Q3 FY2026 revenue of £178.5 million missed the £183.9 million consensus and guidance was cut again, compounding a broader 56% year-to-date decline amid an £364.6 million goodwill impairment.
What is Endava's biggest competitor?
Endava competes most directly with EPAM Systems and Grid Dynamics in engineering-first digital services, and faces pricing pressure from larger incumbents like Accenture, TCS, Infosys, Cognizant, Wipro, and Capgemini in the broader IT-services market.
Timeline
  • 2026-06-30Endava partners with Wiz (Google Cloud) for enterprise AI cloud security
  • 2026-06-26Miro blog details Endava's Copilot rollout and 70% initial suggestion rejection rate
  • 2026-06-04OpenAI publishes case study on Endava's ChatGPT Enterprise and Codex deployment
  • 2026-05-21Q3 FY2026 revenue £178.5M, down 8.4% YoY; stock falls 21%; £364.6M goodwill impairment disclosed
  • 2026-02-18Endava partners with Miro to embed AI workflows enterprise-wide
  • 2026-02-01FY2026 guidance cut to £736-750M
  • 2025-09-04FY2025 results announced: revenue £772.3M, up 4.25% YoY
  • 2024-10-11Securities class action lead plaintiff deadline (period May 2023 to Feb 2024)
  • 2024-06-30Headcount peaks near 12,085 employees
  • 2018-07-01Endava completes IPO on NYSE under ticker DAVA
Revision history
21 July 2026
First assessed. Little protection left. The text above is fixed as of this date and is not edited afterwards.
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