Kainos FY26 results fuelled by AI and public sector demand

The group is now targeting £200m in ARR by 2030

Belfast-HQ IT provider Kainos Group has reported strong growth for the year ended 31 March, driven by momentum across all divisions and geographies.

Revenue climbed 17 per cent to £431.1m, compared with £367.2m the year prior.

International turnover rose 18 per cent to £177.2m, representing 41 per cent of group revenue, with North America accounting for 32 per cent, Central Europe eight per cent and the rest of the world one per cent.

Revenue from AI and data-related projects increased 11 per cent to £45.8m.

The business said it has now delivered more than 400 AI and data projects, including 158 during FY26.

Kainos also claimed to be the seventh largest supplier of AI to the UK public sector, with more than £66m in awarded contracts since 2018.

Existing customers made up 86 per cent of revenue at £370m, up 24 per cent year-on-year.

The company counted 1,253 customers in FY26, (FY25: 1,094).

It also employs 3,475 people across 17 countries, up from 2,865 the year prior.

The buyout of Canadian consultancy Davis Pier in September added around 120 staff.

Division revenue breakdown

The Workday partner divides its operations across three business units: digital services, Workday services and Workday products.

Revenue in digital services jumped 23 per cent to £241.7m.

Public sector top line rose 11 per cent to £136m while healthcare turnover surged 55 per cent to £74.9m, with both sectors reportedly benefiting from large contract wins including programmes with the Home Office, Department for Transport, Driver and Vehicle Standards Agency and NHS England.

Meanwhile, commercial sector earnings fell 41 per cent to £10.7m as Kainos deprioritised acquiring new commercial customers in favour of investment into other digital services growth areas.

North America top line skyrocketed 127 per cent to £20.2m, of which 75 per cent represented organic growth alongside a six-month contribution from the purchased of Davis Pier.

The Workday services division grew nine per cent year-on-year to £107.6m, up from £98.7m.

Momentum in the Americas offset continued softness in EMEA, where revenue declined one per cent, continuing a trend impacting the division since FY24.

On the other hand, the company said the regional picture has improved, with sequential growth recorded in each half-year period since H2 FY25.

Kainos also pointed to progress in newer markets including Australia, New Zealand and LATAM.

The Workday products division rose 15 per cent to £81.7m, while annual recurring revenue (ARR) increased 23 per cent to £89m.

The company now expects the unit to reach £100m in ARR by the end of FY26 and £200m by the end of 2030.

To support those ambitions, Kainos has reshaped the division’s leadership team since the start of the year.

In January, the company hired Richard Moore as chief marketing officer for Workday products alongside Nick Venables as CRO.

David Bowen joined as chief product officer for the unit a month later, while Naomi Boyd was appointed chief customer officer in March.

Derek Brown is also set to become Workday global practice leader in June, replacing Malachy Smith, who will transition into an advisory role within the business.

The division now serves nearly 700 customers, compared with 560 in FY25.

“This was a positive year for Kainos, with excellent revenue growth,” said CEO Brendan Mooney.

“Our strong customer relationships and significant contracted backlog position us well for further progress in the year ahead.

“Our major contract wins in the year reflect our expertise and track record in the public and healthcare sectors.

“We are also excited about the potential in North America, bolstered by the addition of Davis Pier in Canada.”

Outlook

For FY27, Kainos expects continued momentum in Workday products, including reaching its £100m ARR target by the end of FY26.

The company also expects further growth in digital services, led by public sector and healthcare operations in the UK and North America.

Workday services is additionally projected to return to stronger momentum, supported by customer demand and consulting activity.