**Summary**
Kainos Group plc, a UK-based IT provider, reported strong financial results for the year ended 31 March 2026. Revenue grew by 17% to £431.1 million, driven by strong sales execution across its three divisions: Digital Services, Workday Services, and Workday Products. Statutory profit before tax increased by 19% to £58.1 million, while adjusted pre-tax profit rose by 2% to £67.1 million. The company experienced significant growth in bookings (32% to £505.3 million) and contracted backlog (18% to £433.9 million).
Operational highlights included rapid growth in Workday Products, with revenue up 15% to £81.7 million and Annual Recurring Revenue (ARR) increasing by 23% to £89.0 million. The division is on track to achieve ARR targets of £100 million by the end of 2026 and £200 million by 2030. Digital Services returned to growth with a 23% revenue increase to £241.7 million, driven by significant contract wins in healthcare and the public sector, as well as expansion in North America. Workday Services also grew, with revenue up 9% to £107.6 million, supported by complex deployments and international expansion.
The company continued to invest in its business, including product development, the acquisition of Davis Pier, and the construction of a new Belfast headquarters. Cash conversion remained strong at 99%, and the company returned £55.7 million to shareholders through share buybacks. Employee numbers increased to 3,475, reflecting organic growth and the Davis Pier acquisition.
Looking ahead, Kainos expects continued momentum in Workday Products, further growth in Digital Services, and another positive year for Workday Services. The company remains focused on its strategic priorities, including maintaining a positive culture, effective talent management, and expanding its international presence. Despite macroeconomic uncertainties, Kainos is well-positioned for future growth, supported by its strong customer relationships, significant contracted backlog, and robust financial position.
| Financial Metric | 2025 | 2026 | Change |
|---|---|---|---|
| Revenue | £367.2m | £431.1m | +17% |
| Statutory Profit Before Tax | £48.6m | £58.1m | +19% |
| Adjusted Pre-Tax Profit | £65.6m | £67.1m | +2% |
| Diluted Earnings Per Share | 28.2p | 35.1p | +24% |
| Adjusted Diluted Earnings Per Share | 38.3p | 41.1p | +7% |
| Total Dividend Per Share | 28.4p | 29.6p | +4% |
| Bookings | £382.4m | £505.3m | +32% |
| Product Annual Recurring Revenue (ARR) | £72.6m | £89.0m | +23% |
| Contracted Backlog | £368.2m | £433.9m | +18% |
| Cash | £133.7m | £89.1m | -33% |