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. Pixabay/Public domain 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.