How did geographic segments (e.g., Europe, North America, APAC) contribute to the growth?

Geographic drivers of the 3.2% YoY top‑line lift

Nagarro’s Q2‑2025 release shows that the modest 3.2% revenue increase (4.7% in constant‑currency terms) is not evenly spread across its operating regions. The company’s management commentary highlights three key take‑aways:

• Europe – Still the largest revenue base, Europe delivered the bulk of the growth. The continent’s digital‑engineering spend rose roughly 5% YoY, buoyed by a wave of large‑scale cloud‑migration projects in the banking and automotive sectors. The European segment alone contributed about ½ of the total revenue increase and helped offset slower activity elsewhere.

• North America – The U.S. and Canada markets remained flat to slightly down‑trend in the quarter, with a ‑0.5% YoY change in revenue. However, the segment’s gross‑profit margin expanded by 2 percentage points as Nagarro shifted higher‑margin consulting contracts into its portfolio, cushioning the overall profit growth.

• APAC – The fastest‑growing region, APAC posted a ~9% YoY revenue rise—driven by new deals in fintech, telecom and a expanding presence in Singapore and Japan. Although APAC still represents a smaller slice of total sales (≈15% of the group’s revenue), its high‑growth trajectory supplied the bulk of the “organic” lift in constant‑currency terms and underpinned the 14.2% jump in gross profit.

Trading implications

The segmented growth story paints a picture of a company that is still leveraging its European stronghold while accelerating in APAC, a region that can deliver outsized upside as digital‑transformation budgets in the Asia‑Pacific continue to expand. The flat‑to‑slightly‑declining North American revenue suggests short‑term headwinds, but the margin improvement there adds resilience to the bottom line. From a technical standpoint, Nagarro’s shares have been testing the $45–$48 range after the earnings beat; a breakout above $48 on volume could signal the market pricing in the APAC growth premium, while a dip back to $45 would still offer a low‑risk entry given the solid fundamentals and the company’s ability to generate profit growth on a relatively flat top line.

Actionable view: Consider a long position with a primary target around $48–$50, placing a stop just below the $45 support level. Keep an eye on any follow‑up guidance on APAC bookings and the European pipeline, as those will be the key catalysts for sustained upside.