Kainos Group (LON:KNOS) Announces Earnings Results

Kainos Group (LON:KNOS) announced its quarterly earnings data on Monday. The company reported GBX 41.60 EPS for the quarter, Digital Look Earnings reports. The company had revenue of £431.10 million during the quarter. Kainos Group had a net margin of 9.86% and a return on equity of 41.45%.

Here are the key takeaways from Kainos Group’s conference call:

• Kainos said it is “back in growth mode,” with sales bookings up 32% to a record £505 million, revenue up to £431 million, and backlog above £430 million, giving management strong visibility into FY2027 and beyond.
• All three divisions grew: Digital Services bookings rose 29%, Workday Services bookings rose 44%, and Workday Products ARR increased 23%, keeping the company on track for its £100 million ARR target this year.
• Management highlighted strong demand from existing customers, with revenue from existing clients up over £70 million and more than 150 new clients added over the last 12 months, while customer satisfaction remained high with an NPS of 61.
• Profitability lagged revenue growth because Kainos increased its use of contractors and supply partners to scale quickly, while higher bonus costs, Built on Workday investment, and lower interest income all weighed on the adjusted PBT margin, which fell by 2.4%.
• Management remains optimistic on future growth drivers, citing rising demand for AI and data projects, strong momentum in Workday Products and Pay Transparency, and continued expansion in public sector, healthcare, North America, and Canada.

Kainos Group Stock Down 2.7%

KNOS stock opened at GBX 823 on Wednesday. The company has a current ratio of 1.17, a quick ratio of 1.59 and a debt-to-equity ratio of 6.11. The company’s 50-day moving average price is GBX 788.51 and its 200 day moving average price is GBX 882.67. Kainos Group has a 52 week low of GBX 680.50 and a 52 week high of GBX 1,190. The company has a market cap of £955.63 million, a P/E ratio of 33.19, a P/E/G ratio of 2.15 and a beta of 0.79.

Analysts Set New Price Targets

Several research firms recently issued reports on KNOS. Berenberg Bank reissued a “buy” rating and set a GBX 1,185 price target on shares of Kainos Group in a report on Tuesday. Shore Capital Group reiterated a “buy” rating on shares of Kainos Group in a research report on Monday, April 20th. Canaccord Genuity Group raised their price target on Kainos Group from GBX 1,150 to GBX 1,200 and gave the company a “buy” rating in a report on Tuesday. Finally, Stifel Nicolaus restated a “buy” rating and issued a GBX 1,282 price target on shares of Kainos Group in a research note on Tuesday, April 21st. Five equities research analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, Kainos Group currently has a consensus rating of “Buy” and an average price target of GBX 1,173.40.

About Kainos Group

Kainos Group plc engages in the provision of digital technology services in the United Kingdom, Ireland, North America, Central Europe, and internationally. It operates through three segments: Digital Services, Workday Services, and Workday Products. The Digital Services segment develops and supports custom digital service platforms for transforming service delivery in public, commercial, and healthcare sectors. The Workday Services segment provides consulting, project management, integration, and post deployment services for Workday’s software suite, which includes cloud-based software for human capital management, and financial management, and adaptive planning.