Source: Inderes

Translation: Original published in Finnish on 7/31/2026 at 8:28 am EEST.

Digia will publish its Q2 report on Thursday, August 6. We expect the company’s revenue to have increased, driven by the Savangard acquisition, while we estimate organic growth to have declined slightly. We expect profitability to have improved year-on-year, especially supported by the efficiency measures implemented in early 2023. In the report, we will focus particularly on management's comments regarding the demand outlook for the IT services market and the progress of new strategic priorities, such as internationalization and AI solutions.

Revenue growth is driven by Poland acquisition

We expect Digia's Q2 revenue to have grown by just under 5% to 56 MEUR (Q2'25: 54 MEUR). The main driver of growth is the acquisition of Polish Savangard, completed in May 2025, which significantly supports the volumes of international business. Organically, we expect revenue to have decreased slightly, weighed down by areas of waning demand where the company implemented efficiency measures earlier in the year. Overall, the demand environment in the IT services market shows a slight positive momentum, and we expect this to support Digia going forward. At the same time, it is worth noting that Digia's comparison periods are better than those of several companies in the sector, as Digia has performed clearly better than the sector throughout difficult times. Digia's business stability is supported by the company's broad overall offering and the large share of continuous services and maintenance, accounting for ~50% of revenue. We are keen to see if the company has observed clearer signs of recovery in the private sector, of which we have seen cautious indications earlier in the year.

Early-year efficiency measures support profitability leap

We expect the adjusted EBITA to have improved to 5.0 MEUR (Q2'25: 4.4 MEUR) which would correspond to a margin of just under 9% (Q2'25: 8.1%). The profitability improvement is primarily due to the change negotiations concluded in Q1. We expect the annual savings of ~2.4 MEUR from these negotiations to fully support earnings development starting from Q2. On the other hand, profitability continues to be constrained by front-loaded investments in productization, artificial intelligence, and international growth during the new strategy period. In addition, general price pressure in the industry combined with wage inflation creates continuous headwinds for margins, although the nearshore capability brought by the Savangard acquisition improves Digia's price competitiveness.

Guidance expected to remain unchanged despite market uncertainty

We expect Digia to reiterate its guidance for 2026, according to which revenue will grow, and EBITA will be at the comparison period's level or grow. In our view, a potential "technical" challenge is once again posed by the company's reporting method, which does not adjust for costs related to change negotiations. On the other hand, the company also had similar expenses in the comparison period. We expect revenue to grow by 2% to 222 MEUR and reported EBITA to be 21.2 MEUR (2025: 21.3 MEUR).

In the report, we will particularly monitor management comments on the demand environment. Although the private sector has shown some signs of recovery, we believe the public sector has remained challenging with fierce price competition. In addition, we will pay attention to the progress of themes presented at the Capital Markets Day in May, such as the application of AI and the integration of Savangard. With its strong balance sheet and cash flow, we believe Digia is well-positioned to continue its acquisition-driven internationalization in the future.