UK's RWS Holdings FY26 profit rises on AI demand
Overview
UK AI solutions firm's FY26 revenue rose 2% to about £700 mln
Adjusted profit before tax for FY26 up about 9% year-over-year
Company expects to complete Acolad acquisition within two weeks
Outlook
Company expects Acolad acquisition to add scale in Europe and expand enterprise client base
RWS expects improved organic growth in FY27, particularly in Transform technology revenue
Company sees AI adoption as a key driver for future industry growth
Result Drivers
GENERATE SEGMENT - Double-digit revenue growth driven by strong performance in TrainAI and increased activity from frontier model developers
PROTECT SEGMENT - Revenue growth supported by new customers, expanded product portfolio, and integration of Obviously Group
TRANSFORM SEGMENT - Revenue declined, but services remained resilient in EMEA, APAC and with global tech clients; initial revenues from Language Weaver Pro noted
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Revenue | GBP 700 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the business support services peer group is "buy"
Wall Street's median 12-month price target for RWS Holdings PLC is GBp170.00, about 18.9% above its October 26 closing price of GBp143.00
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 5 three months ago
Reuters Recommended Reads
Oct 26 - MotorK nine-month revenue falls 13% on non-core exit; withdraws FY26 CARR guidance
Oct 26 - UK's Computacenter raises profit forecast for fourth time this year, shares rise
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)