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One of the biggest stories of last week was how Endava plc (NYSE:DAVA) shares plunged 24% in the week since its latest quarterly results, closing yesterday at US$15.07. It looks like a credible result overall - although revenues of UK£195m were what the analysts expected, Endava surprised by delivering a (statutory) profit of UK£0.18 per share, an impressive 62% above what was forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
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Following last week's earnings report, Endava's twelve analysts are forecasting 2026 revenues to be UK£790.6m, approximately in line with the last 12 months. Per-share earnings are expected to soar 67% to UK£0.51. In the lead-up to this report, the analysts had been modelling revenues of UK£840.1m and earnings per share (EPS) of UK£0.55 in 2026. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.
Check out our latest analysis for Endava
It'll come as no surprise then, to learn that the analysts have cut their price target 22% to US$25.57. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Endava at US$52.35 per share, while the most bearish prices it at US$17.01. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Endava's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Endava's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 1.1% growth on an annualised basis. This is compared to a historical growth rate of 17% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 10% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Endava.