Overview
France-based tech firm's Q4 organic revenue grew 1.8%
Net profit for 2025 rose 18.3%, basic EPS up 22.2%
Company achieved strong free cash flow of €340.9 mln, 6% of revenue
Outlook
Sopra Steria expects 2026 organic revenue growth between 1.0% and 2.0%
Company forecasts 2026 operating margin on business activity of at least 9.5%
Sopra Steria targets medium-term organic revenue growth of 2% to 5%
Result Drivers
Q4 ORGANIC GROWTH - Sopra Steria returned to organic revenue growth in Q4 with a 1.8% increase, driven by positive trends in France and the UK
AI PROJECTS - Significant increase in AI-related projects, with a 44% rise in clients launching AI projects in France
SOLUTIONS UNIT GROWTH - Solutions unit posted 2.6% organic growth, with a 4.2-point increase in operating margin
Company press release: ID:nBw18HMQFa
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
FY Revenue
EUR 5.65 bln
FY Net Income
EUR 296.80 mln
FY Basic EPS
EUR 15.23
FY Net Debt
EUR 246.70 mln
FY Organic Growth
-2.20%
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the it services & consulting peer group is "buy"
Wall Street's median 12-month price target for Sopra Steria Group SA is €209.00, about 70.6% above its February 25 closing price of €122.50
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(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.)