The Sage Group (SGE) Q3 2026 TU earnings summary

Executive summary

• Achieved 11% revenue growth to £2,062 million in the first nine months, driven by strong demand and AI-powered product enhancements.

• AI tools now available to over 600,000 customers, up 20% since May, supporting critical finance, HR, and payroll workflows.

• Growth was broad-based across North America, UKIA, and Europe, with notable momentum in Sage Intacct and cloud-native solutions.

• Sustained acceleration in revenue growth for four consecutive quarters, with balanced contributions from new and existing customers.

• Continued focus on deepening AI capabilities and scaling key products like Sage Intacct.

Financial highlights

• Total revenue rose 11% year-over-year to £2,062 million for the nine months ended 30 June 2026.

• North America revenue up 14% to £932 million; UKIA up 10% to £602 million; Europe up 7% to £528 million for the first nine months.

• Sage Business Cloud revenue grew 15% to £1,762 million; cloud-native revenue up 25% to £794 million.

• Recurring revenue increased 11% to £2,002 million; subscription revenue up 13% to £1,743 million, with 84% subscription penetration.

• Q3 standalone revenue nearly £700 million, with growth accelerating to 12%.

Outlook and guidance

• Full-year guidance reiterated: organic revenue growth expected above 9%.

• Operating margins projected to trend upwards in FY 2026 and beyond, with continued investment in innovation and efficiency.

• Confident in sustainable, efficient long-term growth, supported by disciplined execution and product innovation.