TietoEVRY (HLSE:TIETO) Swings to Quarterly Loss on Higher Sales Is Profitability Under Pressure?

• TietoEVRY Oyj recently reported its third quarter and nine-month earnings for 2025, revealing quarterly sales of €454.2 million, but a net loss of €69.4 million, reversing from a net income of €38.3 million in the prior year period.
• The results show that even with slightly higher sales in the recent quarter, the company experienced a sharp profitability decline, shifting from profit to loss over both periods reported.
• Given this significant turnaround from profit to loss, we will examine what this means for TietoEVRY's investment narrative focusing on its profitability outlook.

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TietoEVRY Oyj Investment Narrative Recap

To be a shareholder of TietoEVRY Oyj, one needs to believe in the company’s ability to reverse its declining profitability and execute on initiatives that drive sustained earnings recovery, especially after posting a sharp net loss this quarter. The swing from profit to loss directly pressures management’s cost optimization efforts, which remain the most important short-term catalyst, while persistent revenue stagnation and ongoing operational inefficiencies appear as the most significant risks in light of the current results.

Among recent company developments, the €115 million cost optimization program, set to run through 2026, is most relevant to these results. Investors will likely be watching for evidence that these efficiency measures can offset operational headwinds and support a path back to profitability as TietoEVRY continues to face near-term pressure on both revenue and margins.

On the surface, higher sales offer some encouragement, but the magnitude of recent losses highlights a risk that could ...

Read the full narrative on TietoEVRY Oyj (it's free!)

TietoEVRY Oyj's outlook anticipates €2.0 billion in revenue and €304.3 million in earnings by 2028. This scenario is based on an annual revenue decline of 10.7% and an earnings increase of €454.1 million from the current earnings of €-149.8 million.

Uncover how TietoEVRY Oyj's forecasts yield a €17.28 fair value, a 5% downside to its current price.

Exploring Other Perspectives

Four members of the Simply Wall St Community estimate fair value for TietoEVRY Oyj between €17.00 and €23.59 per share. Given ongoing concerns about operational inefficiencies and weak revenue growth, these varied perspectives show just how much your view on the company’s future earnings can shape your expectations for performance.

Explore 4 other fair value estimates on TietoEVRY Oyj - why the stock might be worth 7% less than the current price!

Build Your Own TietoEVRY Oyj Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your TietoEVRY Oyj research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free TietoEVRY Oyj research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate TietoEVRY Oyj's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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