Original-Research: GFT Technologies SE (von NuWays AG): BUY

Classification of NuWays AG to GFT Technologies SE

Company Name: GFT Technologies SE

ISIN: DE0005800601

Reason for the research: Update

Recommendation: BUY

Target price: EUR 32

Target price on sight of: 12 months

Last rating change:

Analyst: Simon Keller

Backlog strengthens BUY case

GFT's Q1 26 came in bang in line with our expectations. Fx-adj. revenues

increased 5% yoy to EUR 230m (+3% yoy reported; eNuW: EUR 230m) and adj. EBIT

increased 7% yoy to EUR 16.1m (eNuW: EUR 16.1m), with the margin up 0.2pp yoy to

7.0%. Following several quarters of yoy adj. EBIT declines, this quarter

marks the first clear operational inflection and supports our BUY case.

Particularly strong is the order backlog, which rose 11% yoy to EUR 512m (+15%

in constant FX). This indicates that improving demand in financial services

is increasingly translating into contracts. Combined with a high utilisation

of 92.2% (+0.6pp yoy), leading operational indicators point in the right

direction.

Regional dynamics differed: Americas & APAC grew 12% yoy to EUR 117m (+15%

fx-adj.), driven by Brazil (+33%) and Colombia (+20%). Europe declined 4% to

EUR 111m, with Spain (+9%) only partly offsetting Germany (-10%) and a

still-declining UK (-17% yoy, albeit with materially improved trajectory vs.

FY25's -25%). Importantly, GFT UK swung to a strong adj. EBIT improvement

(mid single digit EBIT margin in Q1). This points to better execution under

the new governance model and supports the view that the UK reset is largely

complete.

Strategically, Q1 adds substance to the AI-centric story. The Wynxx Agentic

AI platform now spans 11 countries (+3 qoq) and 105 clients (+13 qoq),

mainly leveraged on Anthropic's Claude. Megawork (recent acquisition) won an

EUR 18m SAP contract at a Tier 1 Brazilian banking group and GFT was named

2026 Google Cloud Partner of the Year for Cloud Modernization in LATAM.

The FY26 guidance was confirmed with c. EUR 930m in revenues (+5% fx-adj.), c.

EUR 71m adj. EBIT (7.6% margin) and c. EUR 56m EBT. With backlog growth

improving revenue visibility and the UK becoming less of a structural drag,

the path to reach the FY guidance looks credible. In fact, historically, Q1

EBIT has reflected 21.1% of FY EBIT (avg. over the last five years). This Q1

already reflected 22.7% of the FY adj. EBIT guidance.

Peer cross-reads confirm broader industry improvement: In Q1, Cognizant grew

+3.9% yoy (CC) with Financial Services +10% yoy (CC) and bookings +21% yoy,

Capgemini posted +4.5% yoy organic with FS +22% yoy CC (helped by FS-heavy

acquisition), and Sopra Steria accelerated organic growth to +3.2% yoy. FS

was the standout vertical at both Cognizant and Capgemini, and all three

confirmed or upgraded the FY guidance.

In sum, Q1 was a solid start into FY26: P&L in line, backlog materially

stronger, UK risk fading and agentic AI traction becoming more visible.

BUY, PT EUR 32, based on DCF.

You can download the research here:

https://eqs-cockpit.com/c/fncls.ssp?u=f88a82057e13f9f090055333607648ae

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https://www.nuways-ag.com/research-feed

Contact for questions:

NuWays AG - Equity Research

Web: www.nuways-ag.com

Email: research@nuways-ag.com

LinkedIn: https://www.linkedin.com/company/nuwaysag

Adresse: Mittelweg 16-17, 20148 Hamburg, Germany

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2323692 08.05.2026 CET/CEST

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