TietoEVRY Q3 revenue drops as demand for its services softens
Finland's TietoEVRY reported a 14% year-on-year drop in Q3 revenue. It raised its 2026 margin outlook but still expects organic decline this year.
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what happened
According to Reuters, Finnish software and digital services firm TietoEVRY saw its third-quarter revenue fall 14% year on year, driven by an organic decline. Adjusted EBITA margin nevertheless reached 18%, which the company attributes to its cost optimization programme and ongoing cost discipline.
The company said a court ruling and legacy contracts reduced organic growth by 7 percentage points. Some consulting clients have also reassessed technology projects amid geopolitical uncertainty and fast-moving developments in artificial intelligence.
For 2026, TietoEVRY expects organic growth between -6% and -5%, while its full-year adjusted EBITA margin outlook was raised to 15.5–16.0%. The company also agreed to divest Indtech's pulp, paper and fibre software business.
why it matters
For investors, the report is a signal about the state of European IT services and consulting, where project demand remains soft and growth is slowing. According to Reuters, the median 12-month analyst price target is €18.70, about 7.3% below the October 26 close of €20.18, and the average rating on the shares is "hold".
market impact
TietoEVRY shares and European IT services: weaker demand and falling revenue put pressure on the company's valuation.
tags
instruments
sources
- Finland's TietoEVRY Q3 revenue falls on soft demand — Reuters, 27 October 2026 at 07:11 UTC
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