Kainos Shares Jump as FY27 Guidance Upgraded

Shares in Kainos Group (LON: KNOS) surged more than 15% on Tuesday after the Belfast-based IT services group told investors that revenue and profit for the year to March 2027 will come in “comfortably ahead” of current market expectations, extending a rally that has already lifted the stock over 25% since early July.

In its trading update, Kainos said FY26 delivered double-digit revenue growth, strong sales performance and record backlog levels — momentum that has continued into the new financial year. The board now expects FY27 revenue and adjusted pre-tax profit to beat sell-side consensus, which currently sits at £509.3m revenue and £77.1m adjusted PBT (company-compiled ranges: £498.0m–£514.0m and £75.0m–£84.0m respectively).

All three divisions contributed. Digital Services, the largest unit, is growing “very strongly” on the back of significant contracts secured in H2 FY26 and further wins since April. Both Workday Services and Workday Products posted double-digit revenue growth year-on-year.

CFO Richard McCann said confidence in the outlook is underpinned by a “robust pipeline and significant multi-year contracted backlog,” despite acknowledging a volatile macroeconomic backdrop. Half-year results are due on 9 November 2026.

The upgrade builds on a strong run: shares climbed from around 770p on 1 July to 972.5p by Monday’s close, with volumes spiking in late July and mid-August. Tuesday’s news pushed the stock sharply higher again in early trading, as the market priced in what amounts to a pre-announced beat against consensus.

Kainos now carries a market cap of roughly £1.1bn, trading on a trailing P/E near 28x, with analysts likely to lift both estimates and price targets — previously averaging around 1,154p — following today’s statement.