Kainos (LSE:KNOS) has upgraded its expectations for FY27 after making a strong start to the financial year, with momentum across all three of its operating divisions supporting a more optimistic outlook.
The technology group now expects both revenue and adjusted profit before tax for FY27 to be comfortably ahead of current market forecasts.
The improved guidance follows a strong performance in the year ended 31 March 2026, when Kainos delivered double-digit revenue growth, robust sales activity and a record contracted backlog. That momentum has continued into the new financial year, providing increased visibility over future revenue.
Digital Services Benefits From Major Contract Wins
Digital Services is delivering particularly strong growth, supported by significant contracts secured in recent periods.
The division provides digital transformation services to public-sector, commercial and healthcare customers and remains an important contributor to Kainos’ overall growth trajectory.
A substantial multi-year contracted backlog, combined with a healthy pipeline of potential new business, gives management confidence that the division can continue performing strongly despite uncertainty in the wider macroeconomic environment.
Workday Businesses Deliver Double-Digit Growth
Kainos is also seeing positive momentum across its two Workday-focused operations, with both Workday Services and Workday Products generating double-digit revenue growth.
The broad-based performance across all three divisions reduces the group’s reliance on any single area of the business and provides additional support for management’s upgraded FY27 expectations.
While macroeconomic volatility remains a consideration, the scale of contracted work and the company’s sales pipeline provide a degree of visibility as Kainos progresses through the financial year.
Financial Strength Supports Growth Outlook
Kainos’ wider financial profile remains supportive, with growth re-accelerating alongside solid profitability, strong free cash flow generation and very low leverage.
Valuation also provides some support, with a moderate price-to-earnings multiple accompanied by a dividend yield of 3.52%.
Technical indicators are less favourable. The shares remain below important longer-term moving averages, while momentum signals are broadly neutral, limiting the technical support for the otherwise stronger fundamental outlook.
More about Kainos Group plc
Kainos Group plc is a UK-headquartered provider of IT services, digital transformation solutions and software applications, serving major public-sector, commercial and healthcare organisations.
The company operates through three divisions: Digital Services, Workday Services and Workday Products.
Kainos employs more than 3,475 people across 18 countries in Europe, Asia and the Americas, supporting an expanding international customer base while combining digital consultancy and implementation expertise with proprietary software products.
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