The Consulting Industry Is Still Waiting for a Real Turnaround

The majority of consulting firms in Finland and Sweden reported lower revenue in the second quarter. Average revenue growth returned to positive territory, but was driven by acquisitions. Organic growth was negative or close to zero for most companies. At the same time, headcount declined for the second consecutive quarter, with only five of the 25 companies ending the quarter with more employees than at the start.

Cinode’s analysis of the Q2 2026 reports from listed consulting firms shows an industry that has stabilised, but has yet to gain real momentum. Average growth was 0.8%, while median growth remained negative at −0.7%. Eleven of the 25 companies increased their revenue, while 14 reported a decline.

Growth Is Being Driven by Acquisitions

The fastest-growing companies during the quarter were Gofore (+32.4%), Norconsult (+16.8%), Softronic (+11.9%), Exsitec (+11.8%) and CAG (+11.3%). However, in several cases, acquisitions were a key driver of growth. Only six companies reported organic growth above 2%. Gofore, which topped the list, grew by 1.8% organically.

– We have unfortunately not yet seen a real turnaround in the industry. Most consulting firms are still reporting negative organic growth, particularly IT consulting firms. Of the past seven quarters, only one has shown positive growth, says Mattias Loxi, co-founder of Cinode.

Profitability Has Weakened Slightly

The operating margin (EBIT) stood at median of 4.1%, down from 4.8% in the same quarter last year. The median EBITA margin was 6.1%, compared with 6.6%. Twelve of the 25 companies improved their operating margin year-on-year, while 13 reported a decline. At the same time, the number of companies reporting an operating loss increased from three to five.

– Although utilisation has gradually improved during the quarter and cost bases have been reduced, margins remain under pressure. Companies are still finding it difficult to raise prices, and many roles continue to face pricing pressure. At the same time, several companies report having taken significant one-off charges to improve margins going forward. We therefore expect profitability to strengthen during the second half of the year, says Mattias Loxi.

Headcount Is Shrinking Again

The number of employees across the 25 companies fell by 1,126 during the quarter. Only Combitech (+62), CAG (+32), Exsitec (+13), Bouvet (+12) and Sweco (+6) increased their headcount. That is fewer than in the first quarter, when seven companies expanded their workforce.

However, a significant share of the decline is structural rather than market-driven. Tieto’s divestments of Edlevo and HR & Payroll reduced its workforce by around 250 employees, while CombinedX’s decrease of 140 employees was largely due to the sale of Nethouse and the transfer of Ninetech’s Linköping operations. Adjusted for known divestments, the underlying decline was approximately 740 employees.

– We thought we had seen a shift in the trend last autumn, when companies started hiring again in both the third and fourth quarters. But we have now had two consecutive quarters of shrinking headcount, in several cases quite rapidly. Consulting firms are continuing to cut costs, says Mattias Loxi.

Defence Remains Strong, While Automotive and Real Estate Weigh on Growth

The sector picture is broadly consistent across the companies. Defence and energy, together with cybersecurity and AI, are highlighted as strong areas by virtually all firms. At the other end of the spectrum is the automotive industry, where DevPort, for example, saw revenue decline by almost a third and Etteplan points to Sweden and Germany as particularly affected. Real estate and residential construction also remain under pressure, with intense price competition.

AI features in almost every report, but now in two different roles. On the one hand, demand for AI-related assignments is increasing. On the other, AI-generated code is putting pressure on hourly rates in traditional software development. Avensia puts it most clearly: the market is characterised by excess delivery capacity and continued pressure on prices and margins.

Outlook Is Becoming More Positive

Nearly all companies report that demand strengthened toward the end of the quarter and express greater optimism about the second half of the year. B3 Consulting reported its highest utilisation rate since the second quarter of 2023.

– The signals are pointing in the right direction, but we have seen that a few times now without it translating into the numbers. To be convinced, I want to see two things: organic growth above 2% and companies starting to hire on a net basis again. If we see that in Q3, we can start talking about a real turnaround, says Mattias Loxi.