Tieto (formerly TietoEVRY) — Cyborg Score 6/10

Solid
IT Services & Software Solutions

Strategic Profile

In early 2025, Tietoevry sold its Tech Services business unit to the private equity firm Agilitas, and in July, Endre Rangnes was appointed as the president and CEO of Tietoevry. The company has around 14,000 talented vertical software, design, cloud and AI experts dedicated to empowering customers to succeed and innovate. The strategic repositioning targets specialized vertical markets including healthcare, banking, and industrial sectors.

Cyborg Score Rationale

The company's adjusted operating margin improved by close to 4 percentage points to 16.2% while organic growth was -2%, reflecting continued market weakness in consulting business and known headwinds in software businesses. The company maintains competitive advantages in Nordic markets and specialized verticals, though faces near-term growth headwinds.

Top Insights

  • Strategic refocus: Company rebranded to Tieto in Nov 2025, divesting lower-margin Tech Services to Agilitas/Vivicta to concentrate on four specialized vertical software businesses
  • Profitability improvement: Adjusted operating margin expanded ~4 percentage points to 16.2% in 2025 despite organic revenue decline of -2%
  • New leadership: Endre Rangnes appointed CEO in July 2025 to execute rejuvenated strategy with updated financial targets
  • Nordic strength: Maintains leading market position in Finland, Norway, and Sweden with ~14,000 employees and growing AI/cloud capabilities

Named Competitors

  • Consulting & IT Services — Global IT consulting and digital services
  • Software & IT Services — IT services, consulting and technology solutions
  • Digital Services — Digital transformation and IT services

Recent Developments

  • (November 2025) Company rebranded from TietoEVRY to Tieto, reflecting focus shift to core vertical software and consulting
  • (September 2025) Tech Services division (Vivicta) completed separation and now operates as independent company
  • (July 2025) Endre Rangnes appointed CEO; launched rejuvenated strategy with updated financial targets
  • (December 2025) Strategic asset sales announced including Bekk Consulting AS divestment to private equity firm Axcel

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