Original-Research: GFT Technologies SE (von NuWays AG): BUY

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Original-Research: GFT Technologies SE - from NuWays AG

27.04.2026 / 09:00 CET/CEST

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Classification of NuWays AG to GFT Technologies SE

Company Name: GFT Technologies SE

ISIN: DE0005800601

Reason for the research: Update

Recommendation: BUY

Target price: EUR 32

Target price on sight of: 12 months

Last rating change:

Analyst: Simon Keller

AI implementation wave ahead

GFT will report Q1 26 results on May 7. The results should underpin

continued improvement in momentum from prior quarters with reported growth

and margins set to increase.

Q1 26e sales are seen to increase 3.6% yoy to EUR 230.0m (eNuW). Growth should

again be driven by the Americas (eNuW: +17% yoy), where GFT already showed

clear traction in 2025 with Brazil, Colombia and the US growing at high

double-digit rates. The inorganic contribution from Megawork should be

around EUR 4.2m (1.8% of Q1 sales, eNuW).

Q1 26e adj. EBIT looks set to grow 6.8% yoy to EUR 16.1m, implying a 7.0%

margin, up 0.2pp yoy. This marks a clear sequential improvement in earnings

momentum after the UK realignment weighed on Q4 25, causing adj. EBIT to

decline c. 9% yoy. Importantly, the improvement should come despite the UK

unit still diluting group profitability by c. 1pp in Q1 26e (eNuW). Despite

being a seasonally weaker quarter, Q1 26e would already represent 22.7% of

the FY26 adj. EBIT guidance of c. EUR 71m, and hence a supportive start to the

year. For historic comparison, Q1 has contributed 21.1% of FY EBIT on

average over the past five years.

Agentic AI should reinforce demand for GFT's core banking IT capabilities.

Banking and insurance are leading agentic AI adoption, driven by use cases

such as fraud detection, loan processing, underwriting and claims automation

(source: BCG, Capgemini). For GFT, the monetisation angle sits one layer

below: platform transformation, cloud migration, data architecture and

integration into complex banking IT. The set-up is attractive: 75% of

enterprises want service-provider support for priority agentic AI use cases,

while only c. 10% of financial services institutions use AI at scale

(source: BCG, Capgemini). Hence, the implementation wave should still be

ahead.

Peer cross-reads are supportive, with Financial Services standing out as one

of the stronger growth verticals at Accenture, Cognizant and Sopra Steria.

With 88% of revenue in financial services, GFT's sector concentration should

be seen as an edge compared to other IT service providers, in our view.

At the same time, the structural setup has also improved. The EU-Mercosur

trade deal, provisionally applicable from May 1, should strengthen the

framework for cross-border digital and financial services. While we do not

expect a direct revenue uplift this year, the agreement should reduce

perceived execution risk for European banks considering larger nearshore

delivery mandates e.g. in Brazil.

In sum, Q1 should support confidence in the FY26 guidance and keep the

recovery case intact, while the medium-term growth drivers become more

tangible.

BUY, PT EUR 32, based on DCF.

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NuWays AG - Equity Research

Web: www.nuways-ag.com

Email: research@nuways-ag.com

LinkedIn: https://www.linkedin.com/company/nuwaysag

Adresse: Mittelweg 16-17, 20148 Hamburg, Germany

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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss

bestimmter Börsengeschäfte.

Offenlegung möglicher Interessenkonflikte nach § 85 WpHG beim oben

analysierten Unternehmen befindet sich in der vollständigen Analyse.

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