Sage has closed its first half of the fiscal year with double-digit growth, driven by the evolution of its cloud business and the execution of its AI-centered strategy. The British company, specializing in cloud-based enterprise software for business management, accounting, finance, and human resources, reported underlying total revenues of £1.363 billion, an 11% increase versus the same period a year earlier.
The positive momentum in the business comes as companies are accelerating the adoption of digital tools to automate processes, improve decision-making, and gain operational efficiency. In this context, Sage is strengthening its position as a cloud-based enterprise software provider and expanding AI-powered capabilities.
The company has also improved its profitability during the period. Underlying operating profit rose 15%, to reach £326 million, while the operating margin expanded by 80 basis points, to stand at 23.9%. EBITDA, for its part, advanced 14%, to £375 million.
Cloud continues to gain traction in the business
One of the main growth engines has been Sage Business Cloud, whose revenues rose by 15%, to £1,162 million. Within this segment, cloud-native revenues grew 25%, to £518 million, reflecting the growing demand for more flexible, scalable, and connected business solutions.
Annual recurring revenue (ARR) underpinned also advanced 11%, to reach £2,727 million. The company notes that this growth has occurred evenly between new customers and existing customers, pointing to both the acquisition of new businesses and greater adoption of solutions within its current installed base.
Another notable figure is the value renewal rate, which stood at 102%, above the 101% registered in the first half of the previous year. This indicator reflects Sage’s ability to retain customers and increase contract value, partly thanks to the addition of new AI-powered capabilities.
AI, increasingly present in Sage’s offering
The AI strategy has become one of the company’s growth pillars. The company is embedding intelligent capabilities into its products to automate tasks, reduce administrative burdens, and provide greater visibility into a company’s financial and operational information.
This approach is particularly relevant for small and medium-sized businesses, which are seeking solutions that simplify processes such as accounting, invoicing, financial management, or data analytics without undertaking large technology projects.
Products like Sage Intacct have made notable progress thanks to investment in new capabilities and a more AI-focused execution. The company aims to position these features not as standalone add-ons but as a cross-cutting layer within its cloud solutions.
Iberia maintains positive momentum
In Spain and Portugal, Sage also posted favorable momentum. The company confirmed a 9% increase in total revenue in the first half of 2026. Excluding the impact of the ForceManager acquisition in the prior fiscal year, organic growth in Iberia stood at 8%.
These results reflect the growing weight of the Iberian market within its European strategy, especially in an environment where companies need to advance digitalization, regulatory compliance, automation, and efficiency.
The tightening regulatory pressure, the evolution of electronic invoicing, the need to modernize management systems, and growing interest in artificial intelligence are driving demand for more integrated business solutions. For Sage, this context opens new opportunities both in attracting new customers and expanding services to companies already using its platforms.
Following the first-half results, Sage has raised its guidance for the full fiscal year 2026. The company now expects organic growth in total revenues to exceed 9%, supported by the continuity of recurring revenue, cloud momentum, and the adoption of new AI capabilities.
Steve Hare, Sage’s CEO, has highlighted that the company has achieved “an excellent performance in the first half of the year”, with double-digit growth, margin expansion and solid cash generation. According to the executive, these results reflect the execution of the company’s strategy and its understanding of customer needs.
