Kainos Group plc (LON:KNOS), a UK-headquartered IT provider with expertise across three divisions, Digital Services, Workday Services, and Workday Products, has issued a trading update for the year ended 31 March 2026.
The Board anticipates delivering revenue ahead of consensus and adjusted PBT in line with forecasts*. The Company continued its strong performance in the second half of the financial year, achieving double-digit percentage revenue growth, very strong sales performance and record backlog levels.
Kainos grew its workforce by 21% to 3,475 people which includes 259 contractors and third-party consultants. This strong recruitment reflects the depth and visibility of the order pipeline, and the use of external contractors and consultants is a considered response to increased demand, despite the short-term impact on margins.
Divisional Highlights
· Our Workday Products division achieved Annual Recurring Revenue (ARR) exceeding £89m at year end and we remain on track to meet our £100m ARR goal during calendar year 2026 and our £200m target by 2030. Pay Transparency, launched in November to address the EU Pay Transparency Directive (effective June 2026), has secured 35 clients in the period.
· Digital Services grew very strongly, securing significant healthcare and public sector contracts, including programmes with NHS England and the Driver and Vehicle Standards Agency. North America revenue growth remained strong.
· As indicated at our interim results, Workday Services returned to growth in H1 and we recorded further progress in the second half, particularly in our Americas and APAC regions.
Outlook
We are optimistic about the future given our strong momentum across digital transformation and our Workday businesses and reflecting our customers’ continued trust and our colleagues’ on-going commitment.
Our balanced approach enables Kainos to navigate external uncertainties while sustaining momentum across divisions and markets, with margin improvement anticipated in H2 FY27 as the use of contractors reduces. While the macroeconomic environment remains volatile, Kainos operates in markets driven by clear structural trends, and we remain confident of delivering on our strategy.
This confidence is based on our strong financial position: an excellent backlog and solid pipeline, a strong, debt-free balance sheet, disciplined capital allocation and robust cash generation. Together with favourable market trends, strategic capabilities and operational strengths, this provides a solid foundation for sustained growth and long-term shareholder value.
Kainos Group will announce the results for the year ended 31 March 2026 on 18 May 2026.
* Note: Company compiled range is based on known sell-side analyst estimates. The ranges are: Revenue £392.1m – £411.1m and Adjusted PBT £65.6m – £70.0m. The respective consensus figures are £406.5m and £66.4m.
