Tieto lowers 2026 revenue growth outlook citing market weakness

Tieto has lowered its full-year 2026 organic revenue growth outlook to a range of -6% to -5%, down from its previous guidance of -5% to -3%. The company attributes the weaker performance to sustained low demand and the ongoing internal restructuring of its Tieto Tech Consulting business.

Management noted that while the transformation of the consulting unit is progressing, its contribution to overall growth is not expected to be visible until 2027. Simultaneously, volume-based operations within the Tieto Banktech and Tieto Indtech divisions have experienced a decline, further impacting the revenue outlook.

The company issued these updates alongside preliminary financial results for the third quarter. The revised outlook reflects the broader challenges Tieto faces in navigating a shifting consulting market and the lagging results of its current efficiency initiatives.