Tieto reported a 2% decline in revenue for the fourth quarter of 2025, with continued market weakness and challenges in its Banktech and Caretech divisions affecting results. Despite the decrease in revenue, the company achieved a notable improvement in profitability. The adjusted operating margin rose by 3.8 percentage points to 16.2%, attributed to ongoing cost optimization efforts.
The company increased its cost optimization target to EUR 130 million, with progress ahead of schedule. Tieto also executed changes aligned with its updated strategy, including acquisitions in Spain aimed at expanding its presence in Europe and the divestment of Bekk Consulting to simplify operations.
A dividend of EUR 0.88 per share has been proposed, which is at the upper end of Tieto’s stated payout range. Following the sale of Bekk Consulting, a share buyback program valued at EUR 150 million was launched, consistent with the company’s capital allocation principles.
In September, Tietoevry completed the divestment of its Tech Services business, which is now classified as a discontinued operation for reporting purposes.
For full-year 2026, Tieto expects organic growth between -2% and 0%, compared to revenue of EUR 1,852.3 million in 2025. The company anticipates an adjusted operating margin between 14.8% and 15.8%, up from last year’s figure.
Endre Rangnes, President and CEO of Tieto, commented on the results: “We closed the year with strong fourth-quarter profitability across our businesses, demonstrating the impact of disciplined execution in a challenging market. Our adjusted operating margin improved by close to 4 percentage points to 16.2%. Organic growth was -2%, reflecting continued market weakness in our consulting business and known headwinds in our software businesses – the expiration of a large contract in Tieto Banktech and the decline of the legacy product business in Tieto Caretech had a combined negative impact of 2 percentage points on Group growth.”
Rangnes described 2025 as a year marked by significant changes: “2025 was a pivotal year for the company. We went through significant changes in our business portfolio, renewed the management of the company and launched a rejuvenated strategy. Based on our strong foundation and focus on customers and execution, we are set to pursue the leading position in the attractive European software and technology consulting market.”
He outlined progress on strategic priorities such as customer focus, core simplification, selective expansion, and maintaining a competitive cost base: “Initiatives aimed at strengthening customer-centricity – including sales improvement and AI programmes – advanced well… In January 2026, we announced the acquisition of OpenSpring and GrupoOnetec in Spain to gain a foothold in Iberia where we see strong growth opportunities.”
Cost-saving measures have progressed faster than planned: “Cost optimization measures progressed faster than planned, contributing to a clear improvement in full‑year profitability… Improved profitability gives us the confidence to propose a dividend of EUR 0.88 per share… Following the divestment of Bekk Consulting , we launched a share buyback programme…”
Looking ahead to what he called “a year of transition,” Rangnes noted: “Our growth focus and the drive for a lean cost structure are also reflected in the company’s new financial targets… Growth headwinds in Tieto Banktech and Tieto Caretech… will have a negative impact… Our strong order backlog is expected to start yielding growth towards the end of the year.”
He highlighted employee contributions: “At the heart of our company are our people… Diverse customer projects provide unique opportunities to learn and deliver impact… Our efforts have been recognized – during 2025, Tieto was ranked highly as a top workplace…”
Tieto has also made progress toward environmental goals by setting more ambitious greenhouse gas reduction targets across its value chain for net-zero emissions by 2040; these targets were validated by an independent initiative.
Rangnes concluded: “We have set a clear direction, launched new strategic priorities and strengthened our ability to execute. I am confident that we are well on our way to becoming a company that attracts the best talent, has a strong customer focus and continues to deliver good financial performance and attractive shareholder returns.”
Segment performance showed mixed results: Tech Consulting saw revenues drop by 6%, while Indtech grew by 8%. Adjusted operating margins improved across most segments except Caretech.
The full interim report is available at www.tietoevry.com.
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