Here is Why Endava (DAVA) is One of the Underperforming Tech Stocks to Buy According to Analysts
Key takeaways
- On May 21, Endava reported a challenging FQ3 2026, with revenue declining 8.4% year-over-year to £178.5 million.
- Despite these near-term obstacles, leadership emphasized a successful strategic pivot toward AI-native delivery.
- Endava (NYSE:DAVA) now anticipates FQ4 revenue to range between £181.0 million and £185.0 million, reflecting a continued year-over-year decline in constant currency.
Here is Why Endava (DAVA) is One of the Underperforming Tech Stocks to Buy According to Analysts Maham Fatima Sun, June 28, 2026 at 12:29 AM GMT+7 2 min read DAVA MA Endava (NYSE:DAVA) is one of the underperforming tech stocks to buy according to analysts. On May 21, Endava reported a challenging FQ3 2026, with revenue declining 8.4% year-over-year to £178.5 million. The company faced uneven demand and extended deal cycles, leading to significant financial impacts, including a £364.6 million goodwill impairment and a deferred tax asset charge. Consequently, the company recorded a diluted loss per share of £7.55, a sharp downturn from the profit reported in the same period last year.
Despite these near-term obstacles, leadership emphasized a successful strategic pivot toward AI-native delivery. AI-driven business grew from 5% of total revenue a year ago to 15% this quarter, bolstered by new partnerships with Mastercard and Tyl by NatWest. Management maintains that focusing on these high-growth AI initiatives and deepening client relationships will help convert current headwinds into future momentum.
Endava (NYSE:DAVA) now anticipates FQ4 revenue to range between £181.0 million and £185.0 million, reflecting a continued year-over-year decline in constant currency. The company expects adjusted diluted EPS for the next quarter to fall between £0.09 and £0.13.