Sage Group posted an 11% rise in revenue for the first half of fiscal 2026, driven by strong demand from both existing and new customers. Operating margin expanded 80 basis points to 23.9%, while earnings per share climbed 16% to 23.7 pence. Annual recurring revenue grew 11% year-on-year, adding roughly 275 million pounds to reach 2.7 billion pounds. Operating profit increased 15% to 326 million dollars, and profit after tax rose 10% to 224 million dollars. The company declared an interim dividend of 8.05 pence per share, up 8%, and highlighted that its Sage Business Cloud revenue grew 15%, with cloud native revenue up 25%. North America revenue accelerated to 14% growth, including 15% growth in the US. Free cash flow came in at 241 million dollars net of interest and tax, and the leverage ratio stood at around two times, at the upper end of the target range. Management noted that AI-powered features are now available to over 500,000 customers, though the direct revenue contribution from AI remains modest.
Sage Group PLCSage Group reported 11% revenue growth, 16% EPS increase, and margin expansion, all positive financial results.