Revisions trend continues to be negative

Research evidence excerpt

Revisions trend continues to be negative

Equity Research - 23 June 2026 12:32 CEST

Reason: Preview of resultsKnowit

• IT services market is not improving, price pressure continues

• We expect delayed net recruitment recovery, adj. EBITA -3-6%

• With negative revisions trend, we stick to HOLD, TP SEK 90 (95) IT

Market is not improving quickly enough Estimate changes (%)

The Nordic IT services market remains a challenging playing field, with 2026e 2027e 2028e

excess supply putting pressure on hourly prices. This is creating increased Sales -0.6 -1.6 -1.6

focus on utilisation and resulting in continued layoffs to improve sales/ EBIT -6.0 -8.8 -7.6

employee. This is having a negative impact on sales estimates, causing EPS -6.9 -9.6 -8.1

Source: ABG Sundal Collier

a negative estimate revisions trend. The recent surge in memory prices is

also increasing spend on hardware (data storage, servers, laptops etc), KNOW-SE/KNOW SS

which combined with increased costs for AI adoption (GPT and Claude Share price (SEK) 22/6/2026 82.30

licences) lowers the financial headroom for consulting assignments. We Target price (95.00) 90.00

therefore expect muted financial developments near-term, and see few

triggers for a quick turnaround in market dynamics. For Q2, we estimate

-2% organic growth and an adj. EBITA of SEK 61m, up 12% y-o-y, for a MCap (SEKm) 2,256

margin of 4.2% (3.6%). MCap (EURm) 205

No. of shares (m) 27.4

Negative estimate revisions Free float (%) 73.8

Due to the above-mentioned market conditions and no signs of a quick Av. daily volume (k) 71

turnaround, we cut our sales and adj. EBITA estimates by 1-2% and 3-6%

in 2026e-28e, respectively.

Next event Q2 report 17 July 2026

We stay cautious; HOLD

PerformanceEven though valuation has come down recently to 7.7x 2026e EV/adj.