Translation: Original published in Finnish on 2/13/2026 at 8:50 am EET.

We are discontinuing our research coverage of Tietoevry, and therefore we no longer issue a target price (was EUR 18.0) or recommendation (was Reduce) for the share. We recommend that investors continue to follow the company's own stock exchange and investor communications. In addition, the company's announcements and related discussions can be found on the Inderes website. 

Tieto is now more purely international company, offering software, development and consulting services

Tieto's revenue decreased organically by 2% last year to 1,852 MEUR, and the adjusted EBITA-% was 13.8%. The company's business segments are Tieto Tech Consulting, Tieto Banktech, Tieto Caretech and Tieto Indtech. With the Tech Services transaction, the company's structure was simplified, and the remaining parts are positioned in the market's growing sub-segments. The company is now more purely an international provider of software, development and consulting services. Buoyed by its new structure, the company held a Capital Markets Day in November, where it presented its strategy and, in its typical manner, explained when and how it expects growth and profitability improvements to materialize. Our more comprehensive comments on this can be read here.

2026 is an interim year before growth accelerates in 2027-2028

Yesterday, Tieto provided guidance for the current year, expecting organic growth to be between -2% and 0% and the full-year adjusted EBITA margin to be 14.8-15.8%. Prior to Thursday's Q4 report, the updated consensus forecast predicted a 2% decrease in the company's revenue this year (organically -0.5%) and an adjusted EBITA margin of 14.1%. Thus, due to the market situation, the current year will still be challenging in terms of revenue. However, the profitability guidance and better-than-expected cost savings create some upward pressure on consensus estimates. In 2027-2028, the company's target is over 5% annual revenue growth and an adjusted EBITA margin of over 16% by 2028. These financial targets are higher than the consensus estimates. Most of the improvement in profitability in 2027-2028 is expected to come through growth, which is why it is important for the company to succeed in turning to significantly stronger growth.

Share valuation level is relatively neutral

According to the consensus estimates for the current and next year (prior to the Q4 earnings report), Tieto's adjusted P/E ratios are around 13-12x, and the corresponding EV/EBITA multiples are 11-10x. Both multiples are in line with the company's 5-year average (12x and 11x). Based on consensus forecasts, the company will offer investors a dividend yield of approximately 5.5% in the coming years. In our view, from an investor's perspective, Tieto is seen in a way as a turnaround company, as growth and the profitability turnaround are yet to be proven, which limits the valuation. However, the latest guidance gives reason to believe that earnings will turn around.

Inderes' research coverage ends after around 17 years

Tieto has institutional analyst coverage from several other analysis providers. We also recommend that investors continue to follow the company's stock exchange and investor communications. You can also continue to follow the company's news feed on our Tieto company page. Our investor community will continue to discuss the company on the Inderes investment forum. Information about the company as an investment target is also available on its own investor pages. The coverage ends due to Inderes' decision. In our view, the research market is gradually shifting towards a model of target company-funded research that is open to all investors. Due to this and our internationalization strategy, we are focusing our monitoring resources on our company clients, a select group of the largest companies on Nasdaq Helsinki and a few large international companies.