Nagarro Reports Steady Growth in Q1 2026 Financial Results

Nagarro SE, a leader in AI transformation and engineering, disclosed its Q1 2026 financial results, showing a 6.5% year-over-year (YoY) revenue growth in constant currency terms. Q1 2026 revenue reached €248.1 million, marking a minor increase from Q4 2025 and a 0.5% YoY growth in Euro terms. The company's gross profit rose to €77.4 million, with a gross margin increase from 30.6% to 31.2%.

Adjusted EBITDA rose slightly to €31.2 million, while EBITDA saw a substantial jump to €38.8 million, partly driven by a reversal in share-based payment arrangements. EBIT increased to €30.0 million, supported by a significant net profit rise to €19.2 million from €11.2 million in the previous year. However, operating cash flows turned negative due to increased working capital.

The firm ended the quarter with a reduced cash balance of €112.6 million and a marginal increase in loans and borrowings. Nagarro added 540 professionals, bringing total employment to 18,543. Despite fewer clients generating over €1 million in annual revenue, Nagarro continues to fortify its market position in AI transformation.