Tieto CorporationINTERIM REPORT29 April 2026  9:00 a.m. (EEST)



  · Growth -3%, affected by 2 pp. negative impact from known headwinds -
software businesses delivered healthy underlying growth
  · Adjusted EBITA improved by 4.1 pp. to 14.7%, driven by cost optimization
programme and strong margins in software businesses
  · Tieto Tech Consulting impacted by weak market conditions - additional cost
saving measures initiated
  · Strategic transformation continues, including large-scale AI upskilling and
strengthening of strategic partnerships

The full interim report with tables is available at the end of this release.



[][][][][][][]
                                     1-3/2026  1-3/2025
Revenue, EUR million                    448.3     470.8
     Organic growth[1)], %                 -3        -4
     Acquisitions and                      -3         0
divestments, %
     Foreign exchange                       1         0
rates, %
Total growth, %                            -5        -4
Organic growth adjusted for                -3        -3
working days[4)], %
Operating profit (EBIT),                 79.6      26.0
EUR million
Operating margin (EBIT), %               17.8       5.5
Adjusted[2) ]operating                   66.0      49.8
profit (EBITA[3)]), EUR
million
Adjusted[2)] operating                   14.7      10.6
margin (EBITA[3)]), %
Cash flow from operating                 84.8      97.3
activities, EUR million[5)]
Interest-bearing net debt,              376.6     708.0
EUR million



Full-year outlook for 2026 unchanged

Tieto expects its organic1) growth to be in the range of -2% to 0% (revenue in
2025: EUR 1 852.3 million). The company estimates its full-year adjusted
operating margin2) (adjusted EBITA3)) to be 14.8-15.8% (13.8% in 2025).

1) Adjusted for currency effects, acquisitions and divestments
2) Adjustment items include restructuring costs, capital gains/losses,
impairment charges and other items affecting comparability
3) Profit before interests, taxes, amortization of acquisition-related
intangible assets, goodwill and other intangible asset impairment
4) Company estimate
5) Comparative figure includes cash flow for the divested Tech Services business
and Bekk Consulting

CEO comment by Endre Rangnes

Our strategic transformation is gaining momentum

"We delivered strong profitability in the first quarter, driven by the
persistent execution of our cost optimization programme and strong margins in
our software businesses. Adjusted operating profit improved by 4.1 percentage
points to 14.7%. Our growth followed the trajectory we saw in the previous
quarter. Organic growth of -3% reflects continued market weakness in our
consulting business and the phasing out of legacy contracts in Tieto Banktech
and Tieto Caretech, which had a negative impact of 2 percentage points on Group
growth. Underlying growth in software businesses was healthy. Our order backlog
remained solid, up by 8%.

Tieto Tech Consulting's transformation progressing with concrete actions and new
leadership

We continue to execute the strategic transformation in Tieto Tech Consulting in
line with the plan presented at our Capital Markets Day in November 2025. The
business is shifting its ambitions to be a local player with global deliveries,
and in parallel we are renewing our competences to strengthen capabilities
related to new technologies. We have initiated several measures supporting these
changes, including a large-scale AI upskilling programme for 5 000 consultants
with a view to accelerating the business' roadmap to enable customers'
transformation and our engineering productivity. The strategic transformation
coupled with first-quarter revenue falling somewhat short of our expectations is
driving acceleration of the competence shift and further efficiencies through
continued SG&A reductions as well as downsizing and transferring of delivery
capacity to align to demand. To accelerate this transformation and performance
improvement, we have today also announced a leadership change in Tieto Tech
Consulting.

Executing our strategic priorities

The execution of the company's strategic priorities progressed during the
quarter. The recently announced strategic partnership with Microsoft is another
milestone in our customer focus agenda. With the support of the partnership,
covering all of Tieto's businesses and markets, we will take a major step in
bringing AI capabilities and solutions to customers. In addition to the AI
upskilling of 5 000 consultants, the partnership will cover, for example, co
-selling of AI solutions and software development efficiency and quality.

As a significant step towards our aspiration to strengthen Tieto's footprint in
Europe, we signed a framework agreement with Orange Business which will become a
significant provider of capacity and related managed services for our company.
We expect this collaboration to deliver efficiency through standardized
services, and it will play an important role in our customer deliveries and
business continuity.

We have continued to develop our business portfolio. The acquisition of
OpenSpring and GrupoOnetec in Iberia, supporting our international expansion
plans, was closed in January. We also continued the simplification of the
company. In addition to the divestment of Bekk Consulting, closed in February,
Tieto signed an agreement to sell two of Tieto Indtech's software businesses.

AI as a strategic growth and quality driver

AI continues to be a key driver of efficiency and transformation for our
customers, while security concerns and skills shortages are sustaining demand
for external expertise. Tieto is well positioned to exploit the opportunities
opened up by AI, as our software products, managing business-critical data, are
deeply embedded in core processes across verticals, including highly regulated
industries. Based on the current market view, vendors focused on software and
services for complex business-critical processes will have elevated
opportunities to create value through AI with lower disruption risks. AI is
already embedded in our products across businesses, as well as in deliveries and
modernization agendas. With our strong software asset foundation and large
installation base, we continue to serve as a reliable partner in our customers'
AI journey and will remain a relevant player in the market.

As I always say, it all starts with our customers. With AI, we aim to elevate
and enrich customers' business with AI solutions from proofs-of-concept to use
cases in production and scale, creating real value and lasting impact. These
efforts will be fortified by our partnerships with leading technology catalysts
- and our own talents will play a key role in making the benefits tangible."

Financial performance by segment

              Revenue,  Revenue,  Growth,   Organic   Adjusted   Adjusted
Adjusted   Adjusted
                                  %         growth,   operating  operating
operating  operating
              EUR       EUR                 %
              million   million                       profit,    profit,
margin, %  margin, %

                                                      EUR        EUR
                                                      million    million
              1-3/2026  1-3/2025  1-3/2026  1-3/2025  1-3/2026   1-3/2025

Tieto Tech    185.2     215.0     -14       -7        21.3       26.1       11.5
12.1
Consulting
Tieto         140.9     136.9     3         1         24.4       15.4       17.3
11.2
Banktech
Tieto         57.5      57.3      0         -2        15.0       14.1       26.0
24.7
Caretech
Tieto         70.7      67.5      5         2         10.7       8.0        15.1
11.8
Indtech
Eliminations  -6.1      -6.0      -         -         -5.5       -13.7      -
-
and
non
-allocated
costs
Group total   448.3     470.8     -5        -3        66.0       49.8       14.7
10.6

For further information, please contact:

Tomi Hyryläinen, Chief Financial Officer, tel. +358 50 555 0363, tomi.hyrylainen
(at) tieto.com

Tommi Järvenpää, Head of Investor Relations, tel. +358 40 576 0288,
tommi.jarvenpaa (at) tieto.com

A webcast for analysts and media will be held on 29 April at 10.00 a.m. EEST
(9.00 a.m. CET, 8.00 a.m. UK time). Endre Rangnes, President and CEO, and Tomi
Hyryläinen, CFO, will present the results online in English. The live webcast
can be followed via this link: Tieto Q1 webcast
 (https://tieto.events.inderes.com/q1-2026)or on the company's
website (https://www.tieto.com/en/investors/).

To take part in the questions and answers session after the presentation you
will need to dial in by phone. You can access the webcast by registering on this
link (https://events.inderes.com/tieto/q1-2026/dial-in). After registration you
will be provided phone numbers, user ID and a conference ID to access the
conference.

The event is recorded and it will be available on demand later during the day.
Tieto publishes its financial information in English and Finnish.

Tieto Corporation

DISTRIBUTION
Nasdaq Helsinki
Nasdaq Stockholm
Oslo Børs
Principal Media

Tieto is a leading software and digital engineering services company with global
market reach and capabilities. We provide customers across different industries
with mission-critical solutions through our specialized software businesses
Tieto Caretech, Tieto Banktech and Tieto Indtech as well as Tieto Tech
Consulting business. Our around 14 000 talented vertical software, design, cloud
and AI experts are dedicated to empowering our customers to succeed and innovate
with latest technology.

Tieto's annual revenue is approximately EUR 2 billion. The company's shares are
listed on the NASDAQ exchange in Helsinki and Stockholm, as well as on Oslo
Børs. www.tieto.com