Wavestone: Stable Revenue in the First Half, Return to Growth in the Second Quarter
On October 29, 2026, Wavestone reported revenue of €457.2 million for the first half of its 2026/27 fiscal year, stable compared with the same period of the previous fiscal year. The consulting firm also confirmed its revised annual targets.
The second quarter returned to growth, at +2% as reported and +1% at constant scope and exchange rates. The firm also launched an action plan aimed at restoring its operational momentum, with priority given to activities related to artificial intelligence.
Second Quarter Up 2%, Half-Year Down 1% Organically
For the second quarter of fiscal year 2026/27 (July 1 to September 30, 2026), Wavestone generated consolidated revenue of €230.2 million, up 2% year on year. At constant scope and exchange rates, growth reached 1%, in a quarter that benefited from a favorable calendar effect of +1.4%.
For the half-year as a whole, revenue stood at €457.2 million, stable as reported. At constant scope and exchange rates, it declined by 1%, with a favorable calendar effect of +0.7% over the period. The scope includes Wivoo since June 1, 2025, AI Builders since August 1, 2026, and Sand Cherry since September 1, 2026.
According to the firm, the geographic trends remain mixed. France again recorded growth described as “mid-single-digit,” while the Germany-Switzerland-Austria region experienced a decline of similar magnitude, linked to the continued reduction in subcontracting.
In the United States and the United Kingdom, revenue remains significantly down year on year, and the group indicates that a recovery is expected to be gradual.
Utilization Rate Back Up to 72% and Backlog of 4.1 Months
After a low of 71% in the first quarter, the utilization rate recovered in the second quarter to reach 72% for the half-year, a level identical to that of fiscal year 2025/26.
The average daily rate fell by 1.6% to €923 compared with €938 in the previous fiscal year, with changes in geographic mix accounting for two-thirds of this decline.
The order backlog stood at 4.1 months as of September 30, 2026, compared with 3.6 months a year earlier and 4.4 months as of March 31, 2026. AI Builders and Sand Cherry are not yet included in these indicators.
Headcount amounted to 6,365 employees as of September 30, 2026, including approximately 180 from the two acquisitions, compared with 6,111 at the end of fiscal year 2025/26. The twelve-month rolling staff turnover rate remained stable at 12%.
The firm states that it was penalized in the first half by client caution and by the rapid redirection of their budgets toward AI. It acknowledges that it did not seize “the AI transformation wave quickly enough” and that its operations lacked efficiency, particularly in the German-speaking regions, the United States, and the United Kingdom.
Annual Targets Confirmed: Targeted Margin Between 11% and 13%
The action plan has two components. The first accelerates the repositioning toward AI, with the creation of new dedicated operational units in the German-speaking region and in the United States, and the strengthening of the existing unit in France.
AI-related activities represented 24% of half-year revenue, compared with 22% in the first quarter, according to the publication of July 29, 2026, and 17% in fiscal year 2025/26. The second component provides for targeted actions within each operational unit: focusing on the most dynamic clients, evolving offerings, adjusting recruitment, and tightening performance management.
Launched in the second quarter, the plan is expected to produce its effects gradually over the next two to three quarters, according to the firm. Taking into account the usual seasonality, compounded by costs related to the launch of the Lead the shift plan, Wavestone anticipates a recurring operating margin of around 9.1% for the first half.
For fiscal year 2026/27, the group confirmed its target of revenue change ranging from a 1% decline to “low single-digit” growth, compared with €954.3 million achieved in 2025/26, as well as a recurring operating margin between 11% and 13%. These targets are expressed at constant exchange rates and exclude AI Builders and Sand Cherry. The half-year results will be published on December 2, 2026.
