Sparks - Kainos Group

Kainos’ trading update for the year-ended 31 March 2026 (FY26) confirmed that revenue is expected to be above consensus (range £392.1-411.1m, average £406.5m) and PBT is expected to be in line with consensus (range £65.6-70.0m, average £66.4m).  The company saw a strong performance in H226 achieving double-digit sales growth and a record backlog. To meet this increased level of demand, the company grew the workforce by 21% to 3,475 which includes 259 contractors and third-party consultants, which has a short-term impact on margins.

Workday Products (c 19% of revenue) closed the year with ARR of more than £89m (+22% y-o-y, +14% h-o-h) and is on track to meet its £100m target in CY26 and £200m target by 2030. The recently launched Pay Transparency solution won 35 clients in H226. Digital Services (c 54% of revenue) secured significant healthcare and public sector contracts, including programmes with NHS England and the DVSA, and saw strong revenue growth in North America. Workday Services (c 27% of revenue), having already returned to growth in H1, recorded further progress in H2, particularly in the Americas and APAC.

The company highlighted its ability to navigate external uncertainties while sustaining momentum across the business, helped by its strong debt-free balance sheet, and expects margin improvement in H227 as the use of contractors reduces. FY26 results are scheduled for 18 May.