Kainos on track to deliver double-digit full-year revenue growth

The group highlighted its sales performance and record backlog levels as key drivers

Kainos Group is confident it will deliver full-year revenue growth after a strong H2, underpinned by robust demand across its core divisions.

The London-HQ digital solutions provider posted a year-end trading update pointing to a top line exceeding previous forecasts of £406.5m.

While adjusted pre-tax profit is set to come broadly in line with expectations of £66.4m, for the year ended 31 March 2026.

The LSE-listed firm highlighted a “very strong sales performance” and “record backlog levels” as key drivers, with momentum building through the second half of the financial year.

Kainos’ Workday Products division remained a standout performer, with annual recurring revenue (ARR) surpassing £89m by year-end. The company said it is firm and steady to hit its £100m ARR target during calendar 2026 and £200m by 2030.

Its Pay Transparency, launched in November to address the EU Pay Transparency Directive (effective June 2026), has secured 35 clients in the period.

Meanwhile, its digital services arm also delivered solid growth, securing significant healthcare and public sector contracts, including programmes with NHS England and the Driver and Vehicle Standards Agency.

Kainos also expanded its workforce during the year, growing 21 per cent to 3,475 people.

This includes 259 contractors and third-party consultants.

The digital technology company said the headcount rise reflects the “depth and visibility” of the order pipeline, while the use of external contractors and consultants is a “considered response” to increased demand, despite the short-term impact on margins.

Optimistic outlook

As the year unfolds, Kainos remains optimistic owing to its strong momentum across digital transformation and Workday businesses and “reflecting [its] customers' continued trust and [its] colleagues' on-going commitment.”

“Our balanced approach enables Kainos to navigate external uncertainties while sustaining momentum across divisions and markets, with margin improvement anticipated in H2 FY27 as the use of contractors reduces,” said the group in the trading update.

“While the macroeconomic environment remains volatile, Kainos operates in markets driven by clear structural trends, and we remain confident of delivering on our strategy.”