Sage reports 11% revenue growth as cloud and recurring sales expand

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Sage reports 11% revenue growth

Highlights

Sage reports 11% total revenue growth to £2,062 million for the first nine months of FY26, led by broad-based demand across regions.
Sage Business Cloud revenue rises 15% to £1,762 million, with cloud native revenue surging 25% to £794 million and subscription penetration reaching 84%.
Management reiterates expectation for FY26 organic total revenue growth above 9% and further margin expansion, with currency effects broadly neutral at group level.

Nine-month revenue growth and product momentum

As reported by London Stock Exchange, citing London Stock Exchange Regulatory News Service, Sage says total revenue rises 11% to £2,062 million in the first nine months of FY26, with growth across all regions and continued demand from both new and existing customers.

North America revenue increases 14% to £932 million, helped by further strength in Sage Intacct and continued growth in Sage 50 and Sage 200. In the UKIA region, revenue grows 10% to £602 million, driven by the rapid scaling of Sage Intacct, strong growth in Sage 50 and a solid performance from cloud native products for small businesses. Europe revenue rises 7% to £528 million, supported by growth in Sage X3, Sage 200 and other accounting, HR and payroll offerings.

Sage Business Cloud revenue grows 15% to £1,762 million, reflecting continued adoption of cloud products and wider use of AI-powered capabilities across the portfolio. Within that segment, cloud native revenue increases 25% to £794 million.

Recurring revenue supports FY26 outlook

Recurring revenue grows 11% to £2,002 million during the period, while software subscription revenue rises 13% to £1,743 million. Subscription penetration reaches 84%, up from 83% a year earlier, indicating further progress in Sage's transition toward subscription-based software sales.

On an organic basis, excluding M&A effects, total revenue increases 10% to £2,057 million and recurring revenue rises 11% to £1,998 million. Chief Financial Officer Jacqui Cartin says the company is deepening AI capabilities, scaling key products including Sage Intacct and increasing customer value, while management continues to expect FY26 organic total revenue growth above 9% and upward margin progression.

Sage adds that foreign exchange movements are broadly neutral at group level, with sterling stronger against the U.S. dollar and weaker against other currencies than in the prior period.

Our earlier coverage looked at the UK debate over reforming VAT by broadening the tax base and using targeted rebates to protect low-income households. We noted arguments that removing many exemptions could raise meaningful additional revenue while keeping the system progressive, though political and implementation hurdles remain.

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