Kainos Group Shares Jump on ‘Solid Q4 Performance’

Kainos Group (LON: KNOS) surged almost 10% to 699p a share at the open on Monday after the company said it expects full-year revenue and profit to meet analyst expectations. 

The UK-based IT services provider cited a “solid Q4 performance” and strong momentum in key areas of its business.

Despite Monday's rally, the stock remains down this year, over 16% lower as of Friday's close.

In a trading update for the year ended 31 March 2025, Kainos said revenues and adjusted profit before tax are anticipated to fall in line with consensus forecasts of £365.6 million and £65.4 million, respectively. 

The performance was supported by cost discipline and improved growth in the final quarter.

The company highlighted strong performance in its Workday Products division, which achieved annual recurring revenue exceeding £72 million.

Meanwhile, Kainos reaffirmed its ARR targets of £100 million by 2026 and £200 million by 2030.

In Digital Services, public sector revenue is said to have rebounded in the second half, while healthcare and international revenues also grew. 

However, commercial sector activity remained below prior-year levels, according to the firm.

While the company’s Workday Services division continues to face subdued demand, Kainos noted “signs of recovery” and increased international activity, including wins in Australia and New Zealand.

Citing long-term opportunities from digital transformation and AI adoption, Kainos said it remains confident in its strategy, underpinned by a strong balance sheet, robust pipeline and disciplined capital allocation. 

Kainos will publish its full-year results on 19 May.