Digia CMD: Broad offering addresses market trends

Translation: Original published in Finnish on 5/22/2026 at 8:58 am EEST.

Digia held a Capital Markets Day yesterday, where it discussed the implementation of its new strategy announced earlier this year, its businesses, internationalization, and the opportunities created by artificial intelligence. Overall, in our view, the day increased confidence that the overall offering works together and addresses current market trends well. A link to the Capital Markets Day recording can be found here.

Phases of the strategy period are Renew, Grow and Scale

In the big picture, the strategy announced at the beginning of the year naturally did not undergo major changes, but in our opinion, it is again a natural and positive continuation of previous strategies. The measures and schedule for this new strategy period were discussed in detail at the Capital Markets Day. During the strategy period 2026–2028, the company aims to expand into a European trusted partner for intelligent business, both organically and through acquisitions. In our view, the broad and long-proven competitive offering provides a good starting point for this. Artificial intelligence has naturally been brought more strongly into the strategy.

The company's four specialized service areas remain unchanged: 1) Digital Solutions, 2) Business Platforms, 3) Financial Platforms ja 4) Managed Solutions. In its presentation, the company opened up the revenue of the service areas: Digital Solutions revenue was 73 MEUR, Business Platforms and Financial Platforms 61 MEUR and Managed Solutions 84 MEUR in 2025. The company also disclosed in its presentation how much comes from Finland, how much internationally, and the share of the 20 largest customers, which illustrates the degree of business internationalization and customer dependency. Overall, it can be said that the customer base is very diversified and the dependence on large customers is very small. With international business already reaching the 20% mark, it offers the company an even stronger growth platform.

The core of strategy implementation is:

Competence: Renew in accordance with market demand and the requirements of intelligent business. Historically, the company has also pursued this aggressively through acquisitions.

Scalable services and solutions: Productize smart, scalable solutions and services. This, and particularly the productization of services, is in line with the strategy updates of other leading companies (e.g. Netcompany). In addition, the company has almost 20% of its business based on its own products, which is mainly a well-established product offering and provides good profitability and cash flow.

AI solutions and autonomous services: Implement smart solutions and services for customers, utilizing automation and AI. This is at the core of the strategy, and we consider it an important market trend and a clear driver of the company's growth and profitability. In our understanding, Managed Solutions, in particular, benefit from this. The company's perspective is to apply AI as part of its entire offering, rather than selling AI as a separate service. This has clearly worked in the market, as we understand that Digia's data and AI businesses have grown well in recent years.

International expansion: Grow into a European intelligent business leader by leveraging the resources of the entire Group. In terms of the breadth of the service offering, we believe there are good opportunities on paper, but in our opinion, it still requires evidence. However, there is preliminary good evidence of synergies from the rather large Savangard acquisition, in Digia's scale, with stronger sales competitiveness. In addition, international expansion, along with financial targets, will require strong organic and continued inorganic growth in the future. The company has been very successful in this historically, but it still requires a new gear in organic growth and continuous success in inorganic growth.   

The company's competitiveness continues to be based on 1) strong expertise, 2) deep customer relationships and a continuous business model, and 3) a broad service offering, which we subscribe to. In particular, the broad service offering and strong integration and maintenance expertise are well-suited to market trends and differentiate the company from many competitors. In addition, a stable financial position and good cash flow continuously provide good opportunities to invest and implement the growth strategy. The company has proven to be a strategic partner for its customers through business continuity, strong performance in a difficult market, and good NPS scores (most recently 62). Achieving the role of a strategic partner clearly facilitates business, as it brings continuity and reduces the need for more challenging new sales. However, the company must now prove its strength in the IT service market, which is still being shaped by AI. In our view, the company has good opportunities and initial evidence to do so.

The main phases of strategy implementation are: 2026 – Renew, 2027 – Grow, 2028 – Scale. At the beginning of the strategy period, the focus is on service and productization investments, as well as the renewal of the company's own operations, which is also indicated by the guidance for 2026. The following years will then be a period of growth and scalable business. The company is very likely to accelerate the execution of its strategy and growth through M&A, as it has done over the past 10 years (15 acquisitions).

Financial targets are largely the same as in the previous period 

During the strategy period, Digia aims for annual revenue growth of over 10%, including organic and inorganic growth. We left our estimates unchanged after the Capital Markets Day. Digia's target is realistic but requires new acquisitions, as we estimate organic growth to be 1-4% during the strategy period, limited by a challenging market. During the previous strategy period, Digia grew by an average of 8% annually (organically, according to our calculations, 4%). As the economic situation improves and customers' AI investments are released, we believe there is upward pressure on the IT services market and Digia's forecasts.

Revenue growth and target

In terms of profitability, the company aims for an EBITA margin of over 12% of revenue at the end of the strategy period. The target is a level above the sector average (EBITA% of ~6-8%). The company already reached an EBITA margin of approximately 11.5% in 2020-21, partly supported by COVID-related savings. In the last strategy period, annual profitability was 9-10%. On the other hand, the company is also continuously investing in the business and scalable solutions through the income statement. In addition, the company had to streamline its operations, which resulted in relatively significant non-recurring costs. The company is also investing in 2026, which limits profitability. Overall, we consider the profitability target achievable by the end of the strategy period, but market weakness and the disruption brought by AI still keep us cautious, even though there are some small positive signs in the market. Historically, although the company did not quite reach its profitability target, it was still clearly better than for the sector.

EBITA margin and target

In terms of international business, the company is aiming for a share of more than 30% of revenue at the end of the strategy period. In 2022, the share of international revenue was around 8%. After the Top of Minds acquisition, the share of international business rose to around 12% of revenue in 2024 (9% in 2023). With the latest Savangard acquisition, the company took a leap in its strategy period targets, and after the transaction, the share of international revenue will be around 20% at the end of the 2025. The company's raised target of 30% indicates annual growth of around 20% for its international business. This, in our view, requires strong organic growth and a clear focus on international acquisitions.

Share of international revenue