European IT Services: BofA European IT Services Indicator: another decline in April

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European IT Services: BofA European IT Services Indicator: another decline in April

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European IT Services

BofA European IT Services Indicator:

another decline in April

Price Objective Change

Indicator deteriorates sequentially in April 18 May 2026

The BofA European IT Services Indicator declined sequentially for the second Equity

consecutive month in April 2026, a further reversal of the steady improvement since Europe

June 2025 (see Introduction to the Indicator and the BofA European IT Services Indicator IT services

March 2026). Four out of six components deteriorated sequentially (European Aditya Buddhavarapu, CFA >>

Commission Economic Sentiment, EU Services PMI Business Expectations, global Research Analyst

earnings revisions ratio and offshore hiring activity), which we believe largely reflects MLI+44 (UK)20 7995 7318

concerns around the impact of the Middle East conflict. The Indicator’s six-month aditya.buddhavarapu@bofa.com

moving average was broadly flat. Historically, the Indicator leads average organic Frederic Boulan, CFA >>

Research Analyst

revenue growth of our basket (CAP, SOP, ATE) by three quarters. Therefore, we believe MLI (UK)

data over the next couple of months will be key to assess any impact on the growth +44 20 7995 7101

frederic.boulan@bofa.com

recovery path for IT services. While our IT Services coverage has very limited direct

Vivek Vasudeo

exposure to the Middle East, we continue to look for commentary on any signs of impact Data Science Rsch Analyst

from prolonged uncertainty. We expect our IT Services coverage to return to positive MLI (UK) +44 20 7995-3511

growth in 2026E with 2.1% organic revenue growth on average, after two consecutive vivek.vasudeo@bofa.com

years of negative growth.