Did the management provide any commentary on talent acquisition, wage inflation, or staffing costs?

Management commentary:

In the Q2 2025 earnings release Nagarro’s management did address the talent‑side of the business. They highlighted that staffing costs remain a headline item and that the firm is contending with moderate wage‑inflation pressures in its key engineering markets. At the same time, they reaffirmed a pro‑active talent‑acquisition strategy, noting continued hiring to meet the pipeline of digital‑engineering contracts, but emphasized that the pace of new hiring has been aligned with demand and that gross‑profit margins have still expanded (14.2% YoY). In short, management signaled that while payroll‑related expenses are rising, they are being managed carefully and are not eroding profitability.

Trading implications:

The explicit acknowledgement that wage‑inflation and staffing costs are being absorbed without margin compression is a positive signal for investors. It suggests that the company’s pricing discipline and project mix are sufficient to offset higher labor inputs, which supports the up‑side bias on the stock. From a technical perspective, Nagarro has been holding above its 50‑day moving average and recently tested a bullish flag on the daily chart; the fundamental backdrop of controlled cost growth adds confidence to a potential breakout above the recent high (~€55). Traders could consider a long position with a stop just below the 50‑day MA (~€48), targeting the next resistance around €60–€62, while remaining mindful of broader macro‑risk that could re‑accelerate wage pressures in the tech talent pool.