Tietoevry Oyj
OSE:TIETO
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Tietoevry Oyj
OSE:TIETO
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Tietoevry Oyj
Tietoevry Oyj, born from the merger of the Finnish company Tieto and Norwegian firm Evry, has successfully carved a niche in the competitive world of IT services and software solutions. Headquartered in Espoo, Finland, this company stands as a significant player in orchestrating digital transformation across the Nordic region. Rooted deeply in Nordic values, Tietoevry is relentless in its pursuit of harnessing technology to enable societal progress and business efficiencies. Through its extensive portfolio of services, ranging from cloud solutions, data-driven security services to full-scale IT infrastructure management, the company empowers a plethora of industries, including healthcare, banking, and the public sector. Each of these endeavors is driven by a commitment not only to facilitate operational excellence but also to construct environmentally sustainable digital infrastructures.
Tietoevry's business model revolves around crafting tailored technology solutions that streamline processes and sharpen competitive edges for its clients. With a focus on customer intimacy and innovation, the company generates revenue by providing bespoke IT services, software licenses, and support services. Its consulting divisions typically engage with enterprises to design and implement IT strategies that align with their strategic objectives, while the robust software segment develops and maintains proprietary applications that address industry-specific challenges. By leveraging long-term client relationships and recurring revenue streams, Tietoevry has positioned itself as a trusted partner in navigating the complex digital landscapes, thus securing its market presence and financial steadiness.
Tietoevry Oyj, born from the merger of the Finnish company Tieto and Norwegian firm Evry, has successfully carved a niche in the competitive world of IT services and software solutions. Headquartered in Espoo, Finland, this company stands as a significant player in orchestrating digital transformation across the Nordic region. Rooted deeply in Nordic values, Tietoevry is relentless in its pursuit of harnessing technology to enable societal progress and business efficiencies. Through its extensive portfolio of services, ranging from cloud solutions, data-driven security services to full-scale IT infrastructure management, the company empowers a plethora of industries, including healthcare, banking, and the public sector. Each of these endeavors is driven by a commitment not only to facilitate operational excellence but also to construct environmentally sustainable digital infrastructures.
Tietoevry's business model revolves around crafting tailored technology solutions that streamline processes and sharpen competitive edges for its clients. With a focus on customer intimacy and innovation, the company generates revenue by providing bespoke IT services, software licenses, and support services. Its consulting divisions typically engage with enterprises to design and implement IT strategies that align with their strategic objectives, while the robust software segment develops and maintains proprietary applications that address industry-specific challenges. By leveraging long-term client relationships and recurring revenue streams, Tietoevry has positioned itself as a trusted partner in navigating the complex digital landscapes, thus securing its market presence and financial steadiness.
Profitability: Tieto delivered significantly improved profitability in Q4, with adjusted EBITA margin reaching 16.2%, up nearly 4 percentage points from last year.
Cost Savings: The company increased its cost efficiency target from EUR 115 million to EUR 130 million in savings by end of 2026, already achieving EUR 95 million by Q4.
Revenue Growth: Organic revenue growth remained negative at minus 2% for Q4 and the full year, reflecting continued market weakness, especially in Tech Consulting, Banktech, and Caretech.
Order Backlog: Order backlog grew by 13% year-over-year, supporting improved revenue visibility into 2026 and beyond, with major growth expected from Banktech and Caretech in 2027.
Shareholder Returns: Management proposed an annual dividend of EUR 0.88 per share and announced a EUR 150 million share buyback program following the Bekk Consulting divestment.
2026 Guidance: Tieto guided for slightly negative revenue growth (minus 2% to 0%) but expects a step change in profitability, with adjusted EBITA margin targeted at 14.8% to 15.8%.
Strategy Execution: Continued focus on cost structure reset, simplification, targeted acquisitions (notably in Spain), and selected international expansion.
ESG Recognition: Tieto received the highest CDP climate rating and new science-based targets validation, plus employer awards in key markets.