Tietoevry Oyj reported fourth-quarter results showing a modest shortfall on revenue but a stronger-than-expected profitability outcome, the company said on Thursday.
Total revenue for the quarter came in at €464 million, compared with consensus estimates of €468 million - roughly 1% lower than street expectations. Organic growth declined by 2%, versus forecasts centered around a roughly -1% figure.
The revenue gap was mainly attributable to softer demand in the Tech Consulting segment, where organic growth fell 6%. Management also pointed to known software-related headwinds affecting the Banktech and Caretech businesses, which weighed on top-line performance.
On the profit side, adjusted EBITA reached €75 million, exceeding consensus expectations of approximately €70 million. The adjusted EBITA margin expanded to 16.2%, ahead of analyst projections of 15.1%. Company executives credited the margin outperformance to more rapid deployment of cost optimization measures.
During the quarter Tietoevry recorded cost savings of roughly €22 million. Management said the company expects run-rate savings of €95 million by the end of 2025 and has increased its total cost-savings objective to €130 million by the end of 2026.
Looking ahead, guidance for 2026 calls for organic growth in the range of -2% to 0%, with management noting continued headwinds stemming from exits of legacy contracts. For 2026 the firm projects an adjusted EBITA margin between 14.8% and 15.8%, compared with 13.8% in 2025.
On capital allocation, the board has proposed a dividend of €0.88 per share for the period, down from €1.50 in the prior year. The lower payout may be seen as disappointing by some investors, but the company also announced a €150 million share repurchase program tied to the planned divestment of Bekk.
Tietoevry reported that its order backlog grew 13% year-on-year, a positive indicator amid current growth headwinds.
Sectors affected: technology services, financial software (Banktech), healthcare software (Caretech), consulting.