Swedish IT consultancy Knowit reported a significant contraction in profitability for the second quarter of 2026, with EBITA falling to SEK 23 million.
This represents a steep decline from the SEK 51.1 million recorded in the same period last year, highlighting weakening demand or margin pressure within the company's core operations.
The drop in operating profit coincides with lower revenue figures, as indicated by market reports citing the company's financial update.
The sharp year-over-year decline suggests that the broader slowdown in enterprise IT spending is impacting mid-sized Nordic consultancies, which have previously benefited from digital transformation tailwinds.
Investors are likely to scrutinize the guidance for the remainder of the year, particularly regarding customer retention and new contract wins.
The market reaction will depend on whether management attributes the miss to one-off factors or a structural shift in the competitive landscape.