Translation: Original published in Finnish on 4/24/2026 at 7:10 am EEST.

Source: Inderes

Digia publishes its Q1 business review on Wednesday April 29, 2026. We expect the company's revenue growth to have remained strong, particularly supported by the acquisition. Additionally, we expect profitability to have been at a good level, despite the fact that investments limit profitability. The company also implemented efficiency measures early in the year, but they will not begin to significantly boost profitability until Q2. The IT services sector showed small, positive signs of development in Q4 for the first time in a while, so we are interested in hearing the company's thoughts on the state of the IT services market.

We expect revenue growth to have continued, driven by acquisition

We expect Digia's Q1 revenue to have grown by 7.6% to 57.8 MEUR. According to our estimates, this growth is particularly driven by the acquisition of Savangard in Poland, which significantly increased the share of international business (now accounting for approximately 20% of revenue). The number of working days was the same as in the comparison period, and we estimate that organic revenue was at the same level as in the comparison period. During the weak years of the IT services market, Digia performed significantly better than the market because its broad service offering and large share of continuous services brought stability and predictability to revenue development. While we believe the market remains challenging, in Q4, we observed small yet clearer signals of a more positive development in the IT services sector for the first time in a long while. Therefore, we are also interested in the company's comments on a possible upturn in the IT services market.

We estimate profitability was good, although investments limit profitability in Q1

We expect the adjusted EBITA to have been 5.1 MEUR in Q1, corresponding to a margin of 8.8% (Q1'25: 9.0%). Profitability is weighed down by one-off costs of 0.7 MEUR from change negotiations, which were recognized in the quarter and added to our estimates for this preview. However, the negotiations that concluded in March will bring annual savings of around 2.4 MEUR, which we expect will support earnings development for the rest of the year. Additionally, front-loaded investments in line with the "Renew" phase of the new strategy period will limit the margin in the early part of the year as the company, in our view, builds a foundation for scalability in the coming years.

New strategy period kicks off with a focus on renewal

Digia's guidance for 2026 calls for revenue growth and an EBITA at or above the level of the comparison period. Our full-year 2026 estimates are 226 MEUR in revenue (3.9% growth) and 23.2 MEUR in adjusted EBITA (10.3%). The guidance is slightly cautious in our view, reflecting both market uncertainty and the company's internal reform efforts.

We will closely monitor management's comments on the demand situation in the report because, although we have seen some bright spots in the private sector, we believe the public sector remains largely challenging. We estimate that Digia will continue to accelerate the execution of its strategy and internationalization through acquisitions, for which the company's healthy balance sheet and strong cash flow provide good opportunities. Digia will hold a Capital Markets Day in May, during which we expect the company to provide more details on its new strategy period priorities and actions to achieve its targets.