Kainos revenue jumps 37 per cent from major contract wins
Digital services leads growth after a sting of major government deals in H1 2027
Kainos has reported a 37 per cent year-on-year increase in revenue in its half-year financial results, fuelled by major multi-year contract wins.
Revenue was reported to be £268.8m, compared to H1 the previous year which totalled £196.1m.
Adjusted pre-tax profit grew by 30 per cent, from last year’s H1 results of £32m to H1 2027’s £41.7m.
However, gross margin declined by 3.9 percentage points to 31.9 per cent, which Kainos attributed to the ongoing use of contractors and supply partners to support its rapid growth.
Kainos reported strong sales momentum which was driven by several large multi-year contracts.
Kainos claims it is one of the top performing suppliers to the UK Government since April 2026 by total contract value of digital framework wins
The reseller has won a series of major public sector contracts, including a deal worth up to £150m with the Department for Environment, Food & Rural Affairs announced earlier this year, as well as a £111m Home Office deal and a £84m contract with the Foreign, Commonwealth & Development Office, that is due to be signed in H2.
Kainos’ divisions see differing success
Digital Services led Kainos’ growth, with revenue increasing 57 per cent to £162.5m.
This division was already a major growth engine for Kainos in FY26, as revenue in digital services jumped 23 per cent to £241.7m.
Its other two divisions also performed well, with CEO Brendan Mooney commenting, “Workday Products reached £96.0 million of annual recurring revenue at 30 September 2026 and will pass our initial target of £100 million by the end of 2026.
“Workday Services had a good first half, with revenue growth driven by North America and our newer regions such as Australia. This reflects our focus on larger and more complex deployments, which play to our strengths.”
Workday Products’ revenue increased by 22 per cent to £48m, and the division now has over 750 customers, following the recruitment of some highly experienced leaders in the portfolio.
Kainos’ Workday Services division also saw growth, with a nine per cent increase, totalling £58.3m.
AI and data-related revenue was another growth area for Kainos, climbing 40 per cent to £28.5m.
The company said it has now delivered more than 475 AI and data projects across public, healthcare and commercial sectors.
Kainos H2 2027 outlook
Following strong performance in FY26 and H127, Kainos reports it expects further growth in revenue and adjusted profit before tax in H2 in line with current market expectations.
However, the company expects the growth in digital services during H1 to moderate due to tougher year-on-year comparisons.
Workday Products is expected to surpass £100m in ARR during the current quarter, while Kainos said Workday Services is also expected to perform well.
Looking further ahead, Kainos said its substantial multi-year backlog, alongside growing customer demand for AI and digital transformation, presents further growth opportunities for the business.