Tieto, formerly known as Tietoevry, has announced updates to its strategy, financial targets, and capital allocation policy for the period 2026–2028. The company’s Board of Directors has approved new goals that include achieving annual revenue growth of over 5% (CAGR) in 2027–2028 and an adjusted operating margin (EBITA) above 16% by 2028. Tieto also aims to keep its net debt to EBITDA ratio below 2.
The revised capital allocation policy focuses on supporting growth while ensuring shareholder returns. Tieto plans to distribute dividends amounting to 60-80% of net profit. In cases where there is excess capital, the company will consider share buybacks or extraordinary dividends. For the dividend proposal in 2025, the current consideration is set at 80% of net profits, with adjustments for non-cash impairments and IFRS 5 related costs.
Tieto’s updated strategy is built around four priorities: customer first, simplified core operations, selective expansion into international markets, and maintaining a competitive cost base. According to Endre Rangnes, President and CEO: “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.”
In terms of financial development for 2026, Tieto expects flat or slightly negative growth due in part to challenges in its Banktech and Caretech segments but anticipates improved profitability driven by ongoing cost optimization efforts and reduced impact from IFRS 5-related costs. The company expects results from its growth initiatives starting in 2027.
To align with these changes and reflect a more focused operational structure as well as an expanding geographic presence, Tietoevry is rebranding itself simply as “Tieto.” This change will be subject to approval at the Annual General Meeting. The four main business units will also be renamed: Tietoevry Banking becomes Tieto Banktech; Tietoevry Care becomes Tieto Caretech; Tietoevry Industry becomes Tieto Indtech; and Tietoevry Create becomes Tieto Tech Consulting.
Tieto will present further details about its updated strategy during its Capital Markets Day event scheduled for November 25th at 2 p.m. GMT (4 p.m. EET). The event can be followed via live stream on the company’s website.
According to information provided by the company, it employs approximately 15,000 professionals specializing in vertical software solutions across design, cloud computing, and artificial intelligence fields worldwide.
For additional details or inquiries regarding investor relations at Tieto please contact Tommi Järvenpää at +358 40 576 0288 or tommi.jarvenpaa@tietoevry.com.
