NNIT Downgrades 2025 Outlook and Suspends Mid-Term Targets Amid Market Slowdown
Copenhagen, Monday, 22 December 2025.
Citing delayed US projects, NNIT suspended mid-term goals and slashed its 2025 forecast, now expecting organic revenue to contract by 3% amid a broader consultancy slowdown.
Revising the 2025 Financial Landscape
In a significant disclosure on December 22, 2025, NNIT A/S (NNIT:CPH) issued a strategic update that sharply revises its financial expectations for the current fiscal year [1][2]. The Danish IT consultancy now anticipates organic revenue growth to contract, setting the expectation at approximately -3% for 2025 [1]. This represents a marked downturn from the company’s previous guidance, which had placed growth at the low end of a 0% to 5% range [1]. Furthermore, the group operating profit margin—excluding special items—has been adjusted downward to roughly 5.5%, a decrease from the earlier projection which sat at the lower end of the 7% to 9% bracket [1].
Internal and External Pressures Mount
The revised outlook is compounded by rising costs associated with special items, which are now expected to reach approximately DKK 83 million, an increase of 14 million from the previously estimated cap of DKK 69 million [1]. Management attributes these financial headwinds to a combination of external market deceleration and internal challenges; specifically, performance improvements within the company have failed to accelerate at the pace originally projected [1]. This sluggishness in internal optimization has occurred alongside a broader slowdown in customer activity, forcing the consultancy to recalibrate its near-term financial trajectory [1].
US Market Headwinds and Strategic Suspensions
A primary driver of this downturn is the company’s performance in the United States, where new contract wins have seen a temporary deceleration [1]. Critically, several large-scale projects in the US market have been postponed into 2026, removing their revenue contribution from the 2025 fiscal year [1]. Consequently, NNIT has formally suspended its mid-term financial aspirations toward 2027, which were originally communicated in February 2025 [1]. These now-suspended targets had aimed for an annual organic revenue growth of 7% to 10% and a group operating profit margin exceeding 10% [1]. The suspension signals a recognition that the current market volatility requires a re-evaluation of long-term growth distinct from previous strategic plans.
Market Reaction and Historical Context
The market reacted swiftly to the announcement, with NNIT’s stock price on Nasdaq Copenhagen trading at 48.90 DKK as of the morning of December 22, 2025, reflecting a decline of 1.71% [2]. This adjustment follows a pattern of revised expectations throughout the year; the company had previously lowered its organic revenue growth outlook to the 0-5% range on May 5, 2025, and revised earnings guidance again on September 3, 2025, following a Q2 revenue decline of 2.5% [2]. Despite these challenges, investment analysts at DNB Carnegie reiterated a ‘hold’ recommendation in late October, setting a target price of DKK 65 [2].
Public Sector Stability Amid Private Sector Volatility
While the private enterprise sector and US operations face headwinds, NNIT continues to secure significant mandates within the European public sector. Just days prior to the profit warning, on December 19, 2025, the company announced a four-year strategic framework agreement with The Danish Agency for IT and Learning to support critical digital infrastructure [3]. Additionally, NNIT was selected alongside Edora to establish the first phase of Denmark’s new national health data infrastructure for the Danish Health Data Authority [3]. These agreements underscore the company’s continued relevance in delivering secure, large-scale public sector solutions, even as it navigates a contracting commercial market [3]. Investors will look for further clarity when NNIT publishes its Annual Report 2025 on February 5, 2026 [1].