Kainos, a software company from Northern Ireland, expects to exceed revenue expectations for the current financial year. In a trading update covering the period from March 31, 2026, to now, the company reported strong growth in its digital services business. This growth is especially notable in its Workday services and products divisions.
Key Details
Analysts predict Kainos' revenue will be between £498 million and £514 million, with a consensus estimate of £509.3 million. Adjusted profit before tax is expected to be between £75 million and £84 million, with a consensus of £77.1 million, according to the company.
Kainos has partnered with Workday, a US-based provider of human resources and finance software. The company also serves as a key supplier to the UK National Health Service (NHS). Kainos noted it achieved double-digit revenue growth for the financial year ending March 31, 2026. This growth was driven by strong sales and a record backlog of contracts. The board is confident that revenue and adjusted profit before tax for the year ending March 31, 2027, will be well above current market expectations.
Background
The company attributed its growth to several major contracts secured in the second half of the 2026 financial year. Additional contracts have been awarded since the start of the current financial year. Kainos stated, "We remain confident in our outlook for the financial year and beyond." They highlighted a strong pipeline and a significant multi-year contracted backlog. Despite a volatile macroeconomic environment, Kainos believes it is well-positioned to carry out its strategy.
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Kainos' positive outlook may boost investor sentiment in the technology sector. This is especially true for companies involved in digital services and healthcare technology. The expected revenue growth could lead to increased interest in Kainos shares and related stocks in the tech and healthcare markets. Watch for Kainos' results announcement for the six months ending September 30, 2026.
Based on reporting by: irishtimes.com