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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
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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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