Adesso shares surge on strong first-half results, GenAI growth
German IT services firm Adesso reports robust H1 earnings and outlines expanding generative AI opportunities, driving a sharp rise in its stock.
Shares of Adesso AG surged on Tuesday after the German IT services provider reported stronger-than-expected first-half results and highlighted accelerating momentum in generative artificial intelligence (GenAI) projects.
The company posted a 15% year-over-year increase in revenue to €320 million ($347 million) for the six months ended June 30, beating analyst estimates of €305 million. Adjusted earnings before interest and taxes (EBIT) rose 22% to €42 million, supported by demand across its core sectors, including automotive, financial services and public administration.
Adesso also emphasized growing traction in its GenAI initiatives, which contributed €15 million in revenue during the period. The company expects this segment to expand further as enterprise adoption of AI-driven solutions accelerates. Management noted that GenAI projects accounted for roughly 5% of total revenue in H1, up from 3% in the prior-year period.
CEO Dirk Müller said the results reflect strong operational execution and a strategic shift toward high-margin digital transformation services. "Our GenAI pipeline remains robust, with several large-scale contracts in the pipeline," Müller stated in a press release.
The company reaffirmed its full-year guidance, targeting revenue of €650 million to €670 million and adjusted EBIT of €85 million to €90 million, citing sustained demand and pricing power in its key markets.
Adesso’s shares closed 7.2% higher at €48.50 in Frankfurt trading, extending gains after the earnings announcement.
Priya covers listed equities and corporate earnings, reading quarterly results and guidance for what they signal about sector health and forward valuations.
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