Wavestone Adjusts Financial Targets Amid AI Shift

Wavestone reported a 2% revenue decline in Q1 2026/27, reaching €227.0 million. This decrease mirrors the unchanged scope and forex basis, adding pressure as the consulting firm navigates a competitive market. Despite a stable staff turnover rate of 12% and a modest increase in the order book, the consultant utilization rate fell slightly to 71%.

The company is redirecting its focus towards AI, reflecting a strategic shift as AI-related revenues rise to 22% from 17% last year. Regional growth was mixed, with France experiencing mid-single digit growth, while revenue in the US/UK saw significant declines, partly due to delayed client decisions.

Financial targets for 2026/27 have been revised, now forecasting between -1% and low single-digit organic growth, alongside a reduced operating margin target of 11% to 13%. The acquisition of AI Builders aims to bolster Wavestone's AI capabilities and align with its strategic priorities.