Endava (DAVA) Morgan Stanley Technology, Media & Telecom Conference 2026 summary

Strategic focus and client engagement

• Emphasis on engaging C-suite executives to align solutions with client business objectives, particularly leveraging AI to drive efficiency and competitive advantage.

• Shift toward outcome-based contracts and the introduction of an AI-native delivery approach called Endava Flow.

• Recent client wins, such as Paysafe and Nexus, highlight traction with this strategy, especially in the payments sector.

• Strongest early returns and stabilization efforts are seen with the largest clients, with new opportunities emerging from their ongoing transformations.

• Geographic strength noted in the UK, North America, and Asia, with financial services showing resurgence.

AI initiatives and operational transformation

• Endava Flow is a tool-agnostic, agentic AI delivery methodology designed to improve project outcomes and client value.

• The approach requires upfront architectural planning, integrating regulatory, governance, and legacy system considerations before rapid code generation.

• Productivity gains are described as multiples rather than percentages, unlocking previously unaffordable legacy system work.

• Operational improvements include efficiency gains in legal, finance, and sales, with a focus on longer-term, partnership-based client relationships.

• The methodology aims to blend traditional and AI-enabled services, targeting a margin uplift to 20–30% over time.

Financial outlook and investment

• Q4 guidance anticipates an 8% quarter-on-quarter uplift, with 70–75% of revenue underpinned by contracted and committed deals.

• Margin pressure is attributed to intentional investment in AI capabilities and staff, with a 3% impact expected to abate by fiscal 2027.

• The company expects continued investment in AI, but at a reduced rate as foundational work is completed.

• Outcome-based contracts and AI initiatives are expected to drive both top-line growth and margin improvement.

• The Nexus project, a major international payments initiative, serves as a key example of the new methodology's credibility and scalability.