Q2 2026 Nagarro SE Earnings Call Transcript
Key Points
- Nagarro SE (NGRRF) achieved an all-time high quarterly NPS of 70 and a CSAT score of 93.2, reflecting strong client satisfaction and trust.
- The company was ranked number one globally in customer satisfaction and delivery execution in the ISG Digital Engineering Services survey, earning the CX Star Performer Star of Excellence.
- Revenue grew 4.2% in constant currency in H1 2026, with strong growth in the US (9.0%), India (14.7%), and UAE (16.8%), demonstrating diversification benefits.
- Gross margin exceeded 32% in Q2 2026, and adjusted EBITDA margin reached 15.0%, supported by a healthy business mix and operational discipline.
- The number of clients generating over EUR1 million in trailing twelve-month revenue increased to 184, up from 179 in Q1, indicating a growing client base.
- The potential combination with Persistent Systems is progressing, with shareholder approval and a joint statement supporting the offer, which could create a global leader in AI-led digital engineering.
- Revenue growth decelerated in Q2 2026 to 2.0% constant currency, down from 6.5% in Q1, reflecting a muted demand environment for digital services.
- Revenues from Germany declined 3.8% and Austria declined 5.0% in H1 2026 due to planned project ramp-downs and temporary client cutbacks.
- Operating cash flow for H1 2026 decreased to EUR29.5 million from EUR42.4 million in H1 2025, primarily due to pending collections from some clients.
- Days sales outstanding (DSO) increased slightly to 86 days at the end of June 2026, up from 85 days a year earlier, indicating slower collections.
- The company faces pricing pressure in fixed-bid and long-term engagements as clients expect AI productivity gains to be factored in, though this is a small part of the business.
- The broader demand environment remains muted as clients continue to assess the implications of AI on digital build, impacting overall growth.
Good afternoon, everyone, and welcome to Nagarro SE's Q2 2026 earnings call. (Operator Instructions)
And with that, it is my pleasure to hand you over to Michael.
Great. Thank you, Adam, and good afternoon, everyone. My name is Michael Knapp, and I'm part of the Investor Relations team at Nagarro. If you have not yet received a copy of our earnings release, you can find it as well as a copy of our half-yearly statement and today's presentation in the Investor Relations section of nagarro.com. Joining me today is Manas Human, our Co-Founder and Custodian of Entrepreneurship; and Prateek Aggarwal, our Chief Financial Officer.
Before we begin, please note that some of our statements made during this call may be forward-looking and are subject to risks and uncertainties as outlined in our financial reports. Additionally, please refer to our half-yearly statement for important information regarding non-IFRS measures.
And with that, I'm pleased to hand you over to Manas.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
