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Research

Spin-off setbacks, but the stock has overreacted

By Joni GrönqvistAnalyst
Tietoevry
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Q1 was operationally in line with expectations, and we kept our forecasts unchanged in the big picture. However, the biggest news yesterday was that the Banking business will unexpectedly remain part of the group, which was disappointing. In 2024, we expect the company’s earnings to be at the level of the comparison period, due to a challenging market, but to grow moderately in the coming years. Our forecasts are clearly below the company’s target levels. With the share price decline, the valuation picture has become very attractive from several perspectives (2024e P/E 11x, adj. P/E 8x, DCF EUR 28, SOTP EUR 26 and expected return ~20%).

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Tieto is a Nordic provider of digital services and software founded in 1968. The company is headquartered in Finland and employs experts worldwide. It serves thousands of private and public sector customers in nearly 100 countries.

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Forum discussions

Is Tieto being groomed for sale, as it feels like they are streamlining quite commendably now?
2/18/2026, 9:39 AM
8
News Powered by Cision Tieto myy kaksi Tieto Indtechin ohjelmistoliiketoimintaa EG:lle Tietoevry Oyj LEHDISTÖTIEDOTE 18.2.2026 klo 9.30 Tieto...
2/18/2026, 7:31 AM
by Cadel
25
News Powered by Cision Tieto ja Orange Business puitesopimukseen kapasiteetti- ja jatkuvien... Tietoevry Oyj LEHDISTÖTIEDOTE 17.2.2026 klo 10...
2/17/2026, 8:05 AM
by Cadel
17
Message merged into thread: Inderes.fi content development ideas
2/14/2026, 10:17 AM
by Sijoittaja-alokas
0
I support company-paid analysis. Company-paid analysis makes the existence of the coverage itself possible. As for Premium, I pay for the tool...
2/13/2026, 8:05 PM
by Pati_
6
Yep. Back when I was working at Tieto, as soon as Alkio arrived, everything started going downhill. I don’t know if it has anything to do with...
2/13/2026, 7:27 PM
by Pietu
6
At Tieto, things finally seem to be heading in a better direction after a long time. Replacing Alkio with a Norwegian was clearly a good move...
2/13/2026, 6:31 PM
by Hege_
10
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