NNIT reports challenging start to 2026

NNIT’s first quarter financial results reflect a challenging start to the year marked by continued geopolitical turmoil and sustained customer caution, particularly within the life sciences IT consulting industry. Revenue declined compared to the same period last year, and order entry was below plan.

Despite the challenges, NNIT continues to execute on its strategic priorities. Structural cost reductions progressed according to plan, utilization improved, and the company accelerated its AI service offerings with the launch of two new platforms, Alera and Lumina. Targeted growth initiatives have been launched to strengthen sales execution and accelerate revenue generation across its regions.

“Our first quarter results primarily reflect a lower backlog entering the year and continued cautious spending. However, we are building on a solid foundation in life sciences, where we serve 19 of the world’s 20 largest pharmaceutical companies and maintain long-standing customer relationships. Our delivery quality remains high, reflected in a customer satisfaction score of 4.6 out of 5.0. We are making solid progress on our operational efficiency, improving our billability, and we successfully launched our AI frameworks, Alera and Lumina, hence we see clear opportunities to restore profitable growth through targeted initiatives being rolled out in the coming period. However, as the impact is expected to materialize later in the year, we have adjusted our financial outlook for 2026,” says Claus Rydkjær, CEO, NNIT.

Key highlights

• Reported revenue in Q1 amounted to DKK 422.5 million, corresponding to a reported decline of 9.0% and constant currency revenue growth of -7.3%
• Group EBIT excluding special items was DKK 1.1 million, corresponding to a margin of 0.3%
• Targeted growth initiatives have been launched to strengthen sales execution to rebuild backlog and stimulate growth in the second half of the year
• Launch of Lumina, an AI-enabled software delivery framework, and Alera, a validated AI platform for regulated collaboration across life sciences and the public sector

Public and SCALES

Although overall performance reflects a challenging market environment, NNIT continues to see encouraging momentum in parts of the business, most notably within Public in Denmark and SCALES.

• Public DK: Revenue increased, driven by ramp-up on contracts signed in 2025 and increased change requests. Profitability improved due to operational efficiency gains and further actions have been initiated to enhance profitability from Q2 onwards.
• SCALES: Revenue grew double-digit, driven by expansion of existing engagements and a broader customer portfolio. Profitability remained strong, supported by integration of Microsoft service offerings and continued commercial momentum.

Life sciences regions

The life sciences regions in Europe, the US and Asia were affected by the broader slowdown in the life science IT consultancy industry, with continued customer hesitance leading to fewer contract signings and postponed projects.

• Europe: Revenue declined primarily driven by existing large life sciences customers. Structural cost reductions and process streamlining partly mitigated the impact on profitability. The region signed new customers in small/medium-sized segments and expanded existing engagements, including AI-focused contracts.
• US: Revenue declined following a weaker backlog entering the year and continued delays of larger projects. Profitability was significantly impacted by the contraction in revenue and the completion of high-margin projects in 2025. Capacity and cost structures have been recalibrated to align with the current demand.
• Asia: Revenue declined due to reduced activity from a large existing customer and continued macroeconomic uncertainty. The region continued to expand its local customer base and engaged in a major AI project, while further optimizing its cost base.

Outlook for 2026

Following the challenging start to the year, NNIT’s outlook for constant currency revenue growth has been adjusted to single-digit negative (previously 0-5%) and the group EBIT margin excluding special items updated to 4-7% (previously 6-9%) for 2026.

Please refer to nnit.com - Investors for NNIT’s full company announcement regarding the financial results for Q1 2026.