UK's Sage Group H1 revenue rises 11% on cloud growth

Sage group

21/05/2026 07:12

Overview

UK business software provider's H1 underlying revenue rose 11% year-on-year, driven by cloud growth

Underlying basic EPS for H1 rose 16% year-on-year

Company executed £600 mln share buyback programme during the first half

Outlook

Sage expects FY26 organic total revenue growth to be above 9%

Company expects operating margins to trend upwards in FY26 and beyond

Result Drivers

AI-POWERED SOLUTIONS - Co said embedding AI into finance, payroll and HR workflows increased product value and deepened customer relationships

CLOUD GROWTH - Growth in Sage Business Cloud revenue, especially cloud native revenue, drove overall revenue gains

NEW CUSTOMER ACQUISITION - ARR growth balanced between new and existing customers, supported by partnerships and regulatory changes

Company press release: ID:nRSU1676Fa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
GBP 1.36 bln
H1 Operating Profit
GBP 293 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"

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

Wall Street's median 12-month price target for Sage Group PLC is GBp1,117.50, about 24.6% above its May 20 closing price of GBp897.00

The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 19 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.)