Tieto Corporation · OMXHEX:TIETO
Tieto — Q3 2026 Earnings Presentation
20 slides from Tieto's earnings presentation, October 2026
Slide 1: Q3 2026 Strong profitability – growth investments accelerating
Q3 2026 Strong profitability – growth investments accelerating Endre Rangnes, President and CEO Tomi Hyryläinen, CFO 1
Slide 2: Q3: Strong profitability – accelerating investments to support topline growth
Q3: Strong profitability – accelerating investments to support topline growth • Organic growth of -11% – • Agreement to divest Organic growth -11% 7 pp. negative impact from Indtech’s Pulp, Paper and known headwinds Fibre software business • Strong adj. EBITA margin of • Juuso Pajunen appointed 18.0
Slide 3: Full-year guidance for 2026 updated on 26 October
Full-year guidance for 2026 updated on 26 October Organic growth EBITA Adj. -6 to -5% (previous -5 to -3%) 15.5 – 16.0% (previous 14.8 - 15.8%) ▪ Continued soft demand and ongoing transformation in ▪ Successful execution of cost optimization programme Tech Consulting – transformation’s contribution
Slide 4: Continued strong execution of our strategic priorities
Continued strong execution of our 4 strategic priorities 01 Customer 02 Simplified 03 Selective 04 Competitive first core expansion cost base ▪ Recruiting 70 new ▪ Agreement to divest ▪ Caretech opens the German ▪ Run-rate savings of €125m sales professionals Indtech’s Pulp, Paper and market with Un
Slide 5: Building a stronger partner ecosystem to support growth
Building a stronger partner ecosystem to support growth New recognitions strengthen joint go-to-market opportunities Microsoft Frontier Partner Snowflake Premier Partner Validated AI and cloud capabilities – Recognition of customer work, joint opportunities for joint customer engagement sales and te
Slide 6: Tieto Group Q3 key figures
Tieto Group Q3 key figures Revenue, EUR million Organic growth1 Adjusted operating profit (EBITA)2, EUR million 390 -11% 70 / 18.0% (454) (4%) (88 / 19.3%) Net debt/EBITDA Order backlog1 Cash flow from operating activities3, EUR million 1.3 -2% 3 (2.4) year-on-year (45) 1) Adjusted for currency effe
Slide 7: Tieto Tech Consulting
Tieto Tech Consulting Organic growth Transformation progressing into building capabilities -11% and pipeline for growth Q3 reflects soft demand and Building the next phase of growth (-3%) CCCC the scale of transformation €153m (188) • Strengthening AI and data • Soft demand and project capabilities
Slide 8: Tieto Banktech
Tieto Banktech Organic growth Growth impacted by significant known headwinds -18% • Flat underlying growth • Underlying profitability (15%) improved, supported by cost €134m (154) – Comparison impact of -14 pp. optimization measures from the 2025 court ruling – Comparison period includes – Legacy co
Slide 9: Tieto Caretech
Tieto Caretech Organic growth Continued strong performance – European expansion -1% progressing with German market entry (2%) • Continued solid performance in • German market opened as the modern software portfolio University Medical Center Mainz €54m (55) selects Lifecare • Growth impacted by legac
Slide 10: Tieto Indtech
Tieto Indtech Organic growth Solid profitability – growth impacted -3% by volume-based businesses (2%) • Growth impacted by decline in • Agreement to divest Pulp, Paper volume-based businesses in & Fibre business, supporting a €54m (63) Multichannel & BIX and Data more focused portfolio Driven Servi
Slide 11: CFO report
CFO report 11
Slide 12: Strong profitability – supported by Cost optimization programme and continued cost discipline
Strong profitability – supported by Cost optimization programme and continued cost discipline Q3’26 Q3’25 ▪ Organic growth -11% (underlying -4%) Revenue and growth Revenue 390 454 - Tech Consulting org. growth –11%, slightly below our own expectations Organic growth, % -11 4 - Negative 2pp impact fr
Slide 13: Q3 operating cash flow of €3m – impacted by seasonality
Q3 operating cash flow of €3m – impacted by seasonality Operating cash flow (€m) 217 Free cash flow1 (€m) ▪ Cash flow from operations €3m (45) 202 103 - Net working capital increase of €57m (52), 81 85 89 impacted by seasonality 45 21 - Free cash flow1 of €-18m (€217m, incl. net cash 3 flow on dispo
Slide 14: The €130m cost optimization programme is substantially complete
The €130m cost optimization programme is substantially complete with €125m run rate realized by end of Q3 €130m cost optimization programme ▪ Cost optimization target to deliver €130m 35 130 run rate savings by end of 2026 ▪ Execution substantially completed with 95 €125m run rate executed by end of
Slide 15: Personnel reductions continued - attrition at very low level
Personnel reductions continued - attrition at very low level 7.5 7.8 7.6 7.3 7.2 ▪ LTM attrition at 7.2%, reflecting Attrition continued soft market environment % last twelve months (voluntary) ▪ Cost optimization continued – net Q3’25 Q4’25 Q1’26 Q2’26 Q3’26 reduction of ~350 FTEs during the quarte
Slide 16: Outlook remarks – Q4’26
Outlook remarks – Q4’26 • Tieto Tech Consulting: Growth expected to slightly improve from Q3 level. Growth Market demand remains soft. • Tieto Banktech: Expected to turn to growth (no structural headwinds), supported by strong order backlog • Tieto Caretech: Order backlog supporting underlying growt
Slide 17: Q4'26 profitability outlook
Q4'26 profitability outlook Business Q4’25 Profitability outlook adj. EBITA % Tech Consulting 13.8% At or below Q4’25 level Banktech 18.3% Below Q4’25 level Caretech 28.9% At or above Q4’25 level Indtech 16.3% Above Q4’25 level 17
Slide 18: 2026 revenue growth dynamics
2026 revenue growth dynamics Q1 Q2 Q3 Q4 Positive growth Tech Consulting momentum Neutral growth Market softness expected to persist for the year momentum Growth Banktech headwind Legacy run-off -5 pp. Legacy run-off -6 pp. SB1 comparison effect -14 pp. Legacy run-off -4 pp. Caretech Legacy run-off
Slide 19: Our way forward
Our way forward tieto
Slide 20: From transformation to growth
From transformation to growth 2027 CONVERT AND SCALE 2026 RESET AND STRENGTHEN • Legacy headwinds cease • Strong order backlog converting into revenue • Simplified the portfolio • Cost base reset • Developing European sales pipeline creates growth • Reshaped competencies towards AI and data skills •