France's 74Software Q1 revenue rises 10% on subscription growth

74Software SA

30/04/2026 06:38

Overview

France enterprise software group's Q1 revenue rose 10% organically to €182.7 mln

Growth driven by subscription expansion and higher recurring software revenue mix

Company repurchased 234,170 shares to replenish long-term incentive plans

Outlook

74Software maintains 2026 guidance for 3% to 5% organic revenue growth at constant exchange rates

Company targets 2026 margin on operating activities of 15% to 17%

74Software expects 2026 unlevered free cash flow around 10% of revenue

Result Drivers

SUBSCRIPTION EXPANSION - Growth in customer-managed and own-managed subscriptions drove higher recurring revenue across both Axway and SBS

PRODUCT MIX SHIFT - Revenue mix continued to shift toward higher-quality recurring software revenue, with recurring revenue reaching 90.9% of product revenue

DECLINING MAINTENANCE REVENUE - Maintenance and support revenue fell as customers migrated to subscription models, partially offsetting recurring revenue gains

Company press release: ID:nGNE8CSzQW

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
EUR 182.70 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for 74Software SA is €44.40, about 26.5% above its April 29 closing price of €35.10

The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 18 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)