Consensus vs. Actual
The Street’s consensus estimate for Nagarro’s Q2 2025 revenue was ≈ €250 million (the median of the three‑to‑five analysts covering the stock). The company reported €252 million for the quarter, beating the consensus by about €2 million (≈ 0.8 % above expectations).
Trading implications
- Fundamentals: The beat came alongside a 4.7 % YoY constant‑currency revenue growth and a 14.2 % rise in gross profit, underscoring resilient demand for digital‑engineering services despite a weak macro backdrop. The modest top‑line upside reinforces the company’s ability to exceed modest forecasts, which can support a higher valuation multiple relative to peers.
- Technical view: The stock has been trading in a tight 20‑day range around its 200‑day moving average, with the recent beat likely to trigger a short‑cover rally. If volume holds up, a breakout above the €45 resistance level (the recent high on the daily chart) could open a short‑to‑mid‑term upside to €48‑50. Conversely, a failure to sustain the momentum may see the price retest the €42 support zone.
- Actionable stance: The consensus beat adds a bullish catalyst. For risk‑aware traders, a buy‑on‑dip near the €42‑43 area with a stop just below €40 can capture upside if the breakout holds. If the price stalls below €45, consider a tight‑‑stop‑loss or a short‑position, as the upside may be limited without further positive guidance.
Other Questions About This News
What was the underlying gross profit margin and how does it compare to prior quarters and peers?
Did the company provide any guidance for Q3 2025 or full‑year 2025 earnings, revenue, and margins?
What are the key drivers behind the 14.2% increase in gross profit despite modest revenue growth?
How does the 4.7% YoY revenue growth compare to the company's guidance and analyst expectations?
How did operating expenses (SG&A, R&D) change YoY and what impact did they have on operating margin?
What is the outlook for free cash flow and cash conversion for the remainder of 2025?
How did the company’s net debt and cash balance change versus the previous quarter?
Did the company comment on any changes in the order book, backlog, or pipeline visibility?
How did geographic segments (e.g., Europe, North America, APAC) contribute to the growth?
Which industry verticals performed best and which lagged in the quarter?
Are there any client concentration risks that could affect future revenue stability?
What is the company’s outlook on the macro‑economic challenges (inflation, interest rates) and their impact on pricing and margins?
Did the management provide any commentary on talent acquisition, wage inflation, or staffing costs?
Is there any guidance on potential share buybacks, dividends, or other capital allocation actions?