Kainos Group (LSE:KNOS), a UK-headquartered IT services provider spanning Digital Services, Workday Services and Workday Products, said trading since 31 March has strengthened enough for the board to raise guidance for the year ending 31 March 2027.
In London, Kainos shares advanced 21.6% to 1,183p after the guidance upgrade.
The company now expects revenue and adjusted pre-tax profit for the year comfortably ahead of current market expectations, building on double-digit revenue growth, strong sales and record backlog levels achieved in the year to 31 March.
Analyst estimates for the coming year currently range from £498m to £514m in revenue and £75m to £84m in adjusted pre-tax profit, against consensus figures of £509.3m and £77.1m respectively.
Digital Services is growing strongly on the back of significant contracts won in the second half of the last financial year and further wins since April, while both Workday Services and Workday Products posted double-digit revenue growth over the same period a year earlier.
"Kainos operates in markets driven by clear structural trends and remains well positioned to deliver on its strategy", the company said, noting a robust pipeline and multi-year contracted backlog despite a volatile macroeconomic backdrop.
Kainos will report half-year results for the six months to 30 September on Monday 9 November.
News Intelligence what this means for the company
Kainos raised FY27 guidance after a strong start to its new financial year, now expecting revenue and adjusted pre-tax profit comfortably ahead of consensus—which currently sits at £509.3m and £77.1m respectively. The upgrade is anchored in double-digit revenue growth across all three divisions (Digital Services, Workday Services, Workday Products), significant contract wins, and record backlog levels, suggesting momentum is accelerating from FY26's £431.1m revenue and £67.1m adjusted pre-tax profit.
The raise signals execution confidence and validates the structural demand thesis underpinning Kainos's public-sector and enterprise digital transformation focus. However, the guidance remains qualitative ('comfortably ahead') pending the 9 November half-year results, which will be the first hard test of whether the board's confidence translates to numbers that justify the upside.
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