Panmure Liberum has reiterated its 'buy' rating on Kainos Group PLC (LSE:KNOS), the UK information technology provider, after the company lifted its financial guidance comfortably ahead of market expectations.
The upgraded outlook for the financial year 2027 is driven by substantial public sector demand and strong order intake across the group's digital services division.
Digital services revenue is projected to grow by more than 30% this year, supported by key central government contracts with the NHS, Defra, the Home Office, the MOD, and the DVSA.
The company's Workday services and Workday products divisions are also performing steadily, with both units delivering expected double-digit revenue growth.
This delivery marks a standout achievement within a wider software and technology sector that has faced challenging trading conditions throughout the year.
Panmure expects consensus revenue estimates to increase by 7% to 8%, reaching approximately £545 million compared to previous market expectations of £505 million to £509 million.
Consensus profit before tax forecasts are projected to rise by approximately 10% to £85 million, up from the prior market consensus of £77 million.
The improved projections are underpinned by a substantial multi-year contracted backlog alongside a strong pipeline of new commercial opportunities.
Shares in the group currently trade on valuation multiples of 13.5 times enterprise value to operating profit for calendar year 2026 and 12 times for calendar year 2027.
