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Sage kicks off FY26 with 10% revenue growth as cloud and subscriptions accelerate

Story Highlights
  • Sage opened FY26 with 10% revenue growth to £674m, driven by solid performance across North America, UKIA and Europe.
  • Cloud and subscription momentum remained strong, with Sage Business Cloud up 15% and cloud-native revenue up 24%, supporting reiterated full-year guidance.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Sage kicks off FY26 with 10% revenue growth as cloud and subscriptions accelerate

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An update from Sage Group plc ( (GB:SGE) ) is now available.

Sage Group reported a strong start to its 2026 financial year, with total revenue for the quarter to 31 December 2025 rising 10% to £674m, driven by broad-based growth across North America, UKIA and Europe. Sage Business Cloud revenue increased 15% to £574m, underpinned by 24% growth in cloud-native offerings, while recurring revenue also climbed 10% to £655m and software subscription revenue rose 12%, lifting subscription penetration to 84%. Management said performance reflects continued execution of its growth strategy and increased investment in innovation on its AI-powered platform, particularly Sage Intacct and small-business cloud solutions, and reiterated full-year guidance, signalling confidence in sustained, efficient growth and long-term value creation for stakeholders.

The most recent analyst rating on (GB:SGE) stock is a Buy with a £14.00 price target. To see the full list of analyst forecasts on Sage Group plc stock, see the GB:SGE Stock Forecast page.

Spark’s Take on GB:SGE Stock

According to Spark, TipRanks’ AI Analyst, GB:SGE is a Outperform.

Sage Group plc’s overall stock score is driven by its strong financial performance and positive earnings call, highlighting robust revenue growth and strategic focus on cloud and AI. However, the high valuation and mixed technical indicators slightly offset these strengths. Continued attention to operational efficiencies and competitive positioning will be crucial for sustaining growth.

To see Spark’s full report on GB:SGE stock, click here.

More about Sage Group plc

The Sage Group plc is a FTSE-listed leader in accounting, financial, HR and payroll technology for small and mid-sized businesses. Its AI-powered cloud platform digitalises finance and people processes, helping SMEs manage relationships with customers, suppliers, employees, banks and governments, with a particular focus on Sage Business Cloud and cloud-native solutions such as Sage Intacct and Sage Accounting.

Average Trading Volume: 3,486,595

Technical Sentiment Signal: Hold

Current Market Cap: £9.84B

Learn more about SGE stock on TipRanks’ Stock Analysis page.

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