Atos (ATO) Q2 2026 earnings summary

Executive summary

• Strong H1 2026 performance with improved profitability and commercial momentum, despite organic revenue decline year-over-year, and confirmed full-year targets.

• Commercial traction increased, with momentum across strategic pillars: agentification/AI, cybersecurity, and sovereignty.

• Major contract wins and renewals in key sectors, including public sector, energy, and defense.

• Employee engagement improved, with voluntary attrition down to 11.8% and Net Promoter Score up 10.8 points.

• Genesis transformation plan delivered cost savings ahead of schedule, supporting margin expansion.

Financial highlights

• H1 2026 revenue at current perimeter: €3,304 million, down 8.9% organically year-over-year; operating margin at current perimeter: €190 million (5.7% of revenue), up €57 million and +2.1 pts year-over-year.

• Net loss Group share: €-504 million for H1 2026, improved from €-696 million in H1 2025, mainly due to restructuring and refinancing costs.

• Net change in cash: €-120 million, reflecting improved profitability, seasonality, and restructuring outflows.

• Net debt at June 30, 2026: €1,998 million (€1,193 million including IFRS 9 adjustment); liquidity at €1,805 million as of June 30, 2026 (€948 million after July debt repayment).

• Book-to-bill ratio at 91% in Q2 2026; renewal rate at 94%, indicating stable contract renewals.

Outlook and guidance

• FY 2026 organic revenue growth expected at the low end of the -1% to -5% range; operating margin targeted at approximately 7%.

• Positive net cash change before debt repayment, M&A, and at constant currency anticipated for 2026.

• Acceleration of profitable growth and cash generation expected in 2027–2028, with organic revenue CAGR of 5–7% and operating margin target of ~10% by FY 2028; leverage ratio targeted below 1.5x.