DATAGROUP SE (ISIN DE000A41YEV7), a leading German IT service provider, has updated its forecast for fiscal year 2025/2026 (October 1, 2025, through September 30, 2026). The company now expects revenue to range between EUR 565 million and EUR 575 million, which is roughly in line with the prior year's figure of EUR 566 million. However, profitability is anticipated to decline significantly due to a persistently subdued market environment and special factors related to the implementation of strategic measures.
DATAGROUP now projects EBITDA of EUR 71-74 million, down from EUR 84.1 million in the previous year, and EBIT of EUR 33-36 million, compared to EUR 47.3 million previously. This marks a reversal from the company's earlier expectation of slight year-over-year increases in both metrics. The deviation from the prior forecast is primarily attributed to one-time effects totaling EUR 10-11 million, which are linked to strategic investments in future-oriented fields. These measures are intended to drive future growth despite the flat revenue trend.
The announcement comes amidst a challenging market for IT services, as clients remain cautious with spending. DATAGROUP's strategic initiatives are designed to position the company for long-term success, but they come with short-term costs. The company's leadership believes that these investments will pay off in the coming years, although the immediate impact is a drag on earnings.
DATAGROUP, which employs approximately 4,000 people across Germany and, since June 2026, also in the Netherlands, specializes in designing, implementing, and operating IT infrastructures and business applications. Its CORBOX product offers full-service support for global IT workplaces, catering to medium and large enterprises as well as public authorities. The company has a track record of growth both organically and through acquisitions, with a strategy that emphasizes optimal integration of acquired companies. DATAGROUP is actively participating in the consolidation of the IT services industry through its “buy and turn around” and “buy and build” approaches.
This forecast revision reflects the broader economic pressures facing the IT sector, and it underscores the difficult decisions companies must make between short-term profitability and long-term strategic positioning. For investors and industry observers, the update provides insight into DATAGROUP's operational challenges and its commitment to investing in its future, even if it means lower earnings in the near term.
The company's management remains focused on executing its strategy, and the market will be watching closely to see if these investments yield the desired growth. As the fiscal year progresses, further updates may provide additional clarity on the impact of these measures.
