Kainos Group H2 Earnings Call Highlights

MarketBeat

Mon, May 18, 2026 at 8:05 AM EDT 7 min read

Key Points

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• Kainos Group said it has returned to growth, with sales bookings up 32% to GBP 505 million, revenue rising to GBP 431 million, and backlog above GBP 430 million. Management said the results give strong visibility into fiscal 2027 and beyond.

• Growth was broad-based across all three divisions: Digital Services bookings rose 29%, Workday Services bookings increased 44%, and Workday Products ARR grew 23%. North America was the fastest-growing region, with revenue up 20% year over year.

• Margins came under pressure despite strong operating performance because of higher contractor use, partner costs, bonus expenses, and National Insurance increases. Even so, cash conversion was 99%, and the company kept its progressive dividend policy while pausing share buybacks to fund growth initiatives.

Kainos Group (LON:KNOS) said it has returned to growth after reporting stronger sales, revenue and backlog for the year ended March 31, 2026, with management highlighting broad-based momentum across its three divisions.

Brendan, who led the presentation alongside Richard, said the main message from the results was that “Kainos are back in growth mode.” The company reported sales bookings up 32% to GBP 505 million, which Brendan described as a record sales period. Revenue rose to GBP 431 million, while backlog stood at more than GBP 430 million, providing what management called strong visibility into fiscal 2027 and future years.

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The company said growth was not concentrated in one area. Digital Services sales rose 29%, Workday Services sales increased 44%, and Workday Products annual recurring revenue, or ARR, grew 23%. Brendan said revenue also increased across all three divisions, though the rapid growth required greater use of contractors and supply partners, which moderated margin growth.

Customer base and workforce expand

Kainos said it now works with more than 1,250 customers globally, with almost half of its customers based outside the U.K. Revenue from existing customers increased by more than GBP 70 million over the past year, and the company added more than 150 new clients. Brendan also pointed to a Net Promoter Score of 61, which he said placed the company in the “excellent” category.

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North America was the fastest-growing region, with revenue up 20% year over year and now representing about one-third of group revenue. The company also reported growth in the U.K. and Europe.