{"url":"https://newsforagent.com/news/2026-11-13/nagarro-q3-2026-results-profit-drop","markdown_url":"https://newsforagent.com/news/2026-11-13/nagarro-q3-2026-results-profit-drop.md","title":"Nagarro Q3 2026 Profit Falls 40.5% as Revenue Stalls","headline":"Nagarro Posts Flat Q3 Revenue of €255 Million as Net Profit Drops 40.5%","description":"Nagarro's Q3 2026 net profit fell 40.5% to €12.7 million on flat revenue of €255.0 million, while nine-month constant currency growth reached 2.7%.","section":"Earnings & Results","published_at":"2026-11-13T09:41:54+00:00","modified_at":"2026-11-13T09:41:54+00:00","author":"News Desk","key_takeaways":["Nagarro's Q3 2026 revenue was €255.0 million, up 0.2% year over year, with constant currency revenue down 0.2%.","Adjusted EBITDA fell 13.1% to €38.3 million in Q3 2026 and net profit dropped 40.5% to €12.7 million.","Nine-month 2026 revenue grew 2.7% in constant currency to €755.5 million, and adjusted EBITDA rose to €107.3 million."],"companies":[{"name":"Nagarro SE","is_primary":true,"profile_url":"https://akta.pro/company-profiles/0007d5a/nagarro-se","website":"http://www.nagarro.com"}],"source":{"publisher":"PR Newswire","title":"Nagarro releases unaudited Q3 2026 results, posts 2.7% constant currency growth for 9 months ended September 2026","url":"https://www.prnewswire.com/news-releases/nagarro-releases-unaudited-q3-2026-results-posts-2-7-constant-currency-growth-for-9-months-ended-september-2026--302938824.html"},"other_sources":[],"tags":["Earnings & Results","Nagarro SE"],"body_markdown":"Nagarro reported unaudited third-quarter 2026 revenue of €255.0 million, up 0.2% year over year, while net profit fell 40.5% to €12.7 million from €21.4 million. The Munich-based engineering firm released the figures on November 13, 2026, [PR Newswire](https://www.prnewswire.com/news-releases/nagarro-releases-unaudited-q3-2026-results-posts-2-7-constant-currency-growth-for-9-months-ended-september-2026--302938824.html) said.\n\n## Nagarro's Q3 Margins and Nine-Month Growth\n\n[Nagarro SE](https://akta.pro/company-profiles/0007d5a/nagarro-se) is a digital engineering and AI transformation company listed in Munich that employs around 18,500 people in 39 countries, according to its own description.\n\nIn constant currency, third-quarter revenue was negative 0.2% year over year, which translated to 0.2% growth in euro terms. Organic revenue for the quarter was negative 1.6% in constant currency and negative 1.2% in euros. Gross profit was €83.9 million, or 32.9% of revenue, against €84.2 million a year earlier.\n\nAdjusted EBITDA declined 13.1% to €38.3 million, a 15.0% margin, from €44.0 million and 17.3% a year earlier. EBITDA fell 25.2% to €32.5 million, and EBIT declined 31.6% to €23.8 million. Nagarro attributed the EBITDA drop mainly to a €5.8 million decrease in adjusted EBITDA and a €5.2 million increase in net expense from special items, including a €6.4 million rise in share-based payment expense.\n\nFor the nine months ended September 30, 2026, revenue rose to €755.5 million from €753.4 million, a 2.7% increase in constant currency and 0.3% in euros. Adjusted EBITDA grew to €107.3 million, a 14.2% margin, from €104.8 million. Net profit for the period rose 3.8% to €42.5 million.\n\n## Nagarro's Client and Cash Position\n\nThe number of clients generating more than €1 million in revenue over the last 12 months rose to 186 on September 30, 2026, from 184 on June 30, 2026. Operating cash flow in the quarter increased to €48.2 million from €34.7 million a year earlier, which Nagarro attributed to better customer collections and lower taxes paid on intra-group dividends.\n\nDays of sales outstanding improved to 80 days on September 30, 2026, from 82 days on December 31, 2025. Cash and cash equivalents were €124.3 million, compared with €124.6 million at the end of 2025, and loans and borrowings fell to €278.0 million from €310.1 million, mainly because of repayment of a syndicated revolving credit facility. Nagarro reported 18,499 professionals as of September 30, 2026.\n\n## Persistent's Takeover of Nagarro\n\nAccording to akta.pro [company records](https://akta.pro/company-data), Persistent Systems launched a voluntary public takeover offer for all Nagarro shares at EUR 81 per share, backed by EUR 1.4 billion in bridge financing from Barclays, with closing anticipated in the fourth quarter of 2026 or the first quarter of 2027 subject to BaFin approval. The same records show Nagarro's audited 2025 revenue was €999.3 million, a 2.8% increase that fell just short of the €1 billion mark.\n\n## Earlier Nagarro Deal Developments\n\nOn October 14, 2026, Deutsche Börse said Procredit would replace Nagarro in the SDax index after Persistent acquired Nagarro and held about 94% of its shares, FinanzNachrichten.de reported. On October 16, 2026, Persistent CEO Sandeep Kalra said the company was waiting for Nagarro acquisition approvals and expected them within four to six weeks, NDTV Profit reported. On November 4, 2026, Persistent raised ₹7,600 crore in bonds to complete the Nagarro acquisition, The Times of India reported.\n\n## What Comes Next for the Persistent Deal\n\nThe takeover's closing is anticipated in the fourth quarter of 2026 or the first quarter of 2027, subject to BaFin approval, according to akta.pro company records.\n","publisher":{"name":"News for Agent","url":"https://newsforagent.com"}}