Tietoevry: Inside information: Tieto updates its strategy along with financial targets and capital allocation policy
Tietoevry Corporation INSIDE INFORMATION 24 November 2025 7:00 p.m. EET
The Board of Directors of Tieto (formerly Tietoevry) has approved the company's new financial targets and capital allocations policy for 2026-2028. Tieto's target is to reach annual revenue growth1) of over 5% (CAGR) in 2027-2028 and an adjusted2) operating margin (EBITA) of over 16% by 2028. In addition, the company aims to achieve net debt/EBITDA below 2.
The new capital allocation principles enable the company to focus on growth while delivering attractive shareholder returns. The company aims to distribute dividend representing 60-80% of net profit. With excess capital, the company will carry out share buybacks or pay extraordinary dividends. Tieto's current consideration for 2025 dividend proposal is 80% of net profits, adjusted for non-cash impairments and the IFRS 5 related cost burden.
Speeding up strategy execution through four strategic priorities
Based on its strong foundation, Tieto aims to strengthen its market leadership in the company's core Nordic markets while driving selective international expansion with selected software products. The company is speeding up execution of its strategy to become the European software and technology consulting market leader within selected industries through four strategic priorities:
- Customer first
- Simplified core
- Selective expansion
- Competitive cost base
"Our rejuvenated strategy is intended to drive higher growth through customer focus. We have a strong foundation to become the European software and technology consulting market leader within selected industries. Now our focus is set on speeding up execution. Based on our simplified core, we leverage the unique opportunity to expand our vertical software businesses with our consulting services. Selective international expansion is one of the priorities, which brings us from strong Nordic roots to broader European growth, especially with our scalable software solutions. Reflecting our strategic ambitions, we have set new financial targets which we believe are truly realistic and achievable", says Endre Rangnes, President and CEO.
Financial development in 2026 - a year of execution and transition
Tieto will maintain strong focus on executing its strategy in 2026. While growth is expected to remain flat, or slightly negative, impacted by headwinds in Tieto Banktech and Tieto Caretech, profitability will improve, driven by the ongoing cost optimization programme and ending of the negative impact of IFRS 5 -related cost burden. Growth initiatives are anticipated to deliver results from 2027 onwards. Tieto will announce official financial outlook for 2026 in its financial statement release on 12 February 2026.
Renewed brand reflecting simplified operational core and unwavering focus to advance businesses and society with technology
As one catalyst to address the execution of the company's strategic priorities focused on customer first- mindset, simplified core and selective international expansion, Tietoevry is renewing its brand. The new brand considers the company's heritage as well as geographically expanding footprint by opting for simpler and meaningful, Tieto, as the company name. However, the name change of the parent company, Tietoevry Corporation, will be subject to a decision by the Annual General Meeting. The four businesses will also be renamed as follows:
· Tietoevry Banking to Tieto Banktech
· Tietoevry Care to Tieto Caretech
· Tietoevry Industry to Tieto Indtech
· Tietoevry Create to Tieto Tech Consulting
Tieto will host its Capital Markets Day tomorrow
Tieto's Capital Markets Day 2025 "Changing gear to deliver growth" will be held tomorrow, 25 November. The event provides insights into the company's strategy and execution priorities. Tieto's four businesses will provide insights into their respective markets, business priorities, growth plans and share their financial targets.
The event will start on 25 November at 2 p.m. GMT (4 p.m. EET) and can be followed through a live stream. A detailed programme and a link to the webcast along with the presentation materials are available on the company's website. On-demand video will be available after the event.
1) Mainly organic, adjusted for currency effects
2) Adjustment items include restructuring costs, capital gains/losses, impairment charges and other items affecting comparability
For further information, please contact
Tommi Järvenpää, Head of Investor Relations, tel. +358 40 576 0288, tommi.jarvenpaa (at) tietoevry.com
TIETOEVRY CORPORATION
DISTRIBUTION
NASDAQ Helsinki
NASDAQ Stockholm
Oslo Børs
Principal Media
Tieto is a leading software and digital engineering services company with global market reach and capabilities. We provide customers across different industries with mission-critical solutions through our specialized software businesses Tieto Caretech, Tieto Banktech and Tieto Indtech as well as TietoTech Consulting business. Our around 15 000 talented vertical software, design, cloud and AI experts are dedicated to empowering our customers to succeed and innovate with latest technology.
Tieto's annual revenue is approximately EUR 2 billion. The company's shares are listed on the NASDAQ exchange in Helsinki and Stockholm, as well as on Oslo Børs. www.tietoevry.com