The Sage Group (SGE) Q1 2026 TU earnings summary

Executive summary

• Q1 organic revenue growth accelerated to 10%, with total revenue reaching £674 million, driven by strong execution, growth across all key regions, and ongoing investment in AI-powered platform innovation.

• North America led with 13% revenue growth, supported by Sage Intacct and continued demand for Sage 200 and Sage 50.

• UKIA region revenue rose 10%, reflecting rapid scaling of Sage Intacct and strong cross-sell/upsell in Sage Accounting and Sage 50.

• Europe saw 7% revenue growth, with notable performance in Sage 200, Sage X3, and strong results in Iberia.

• Full-year guidance reiterated, with a focus on efficient, sustainable growth and long-term value creation.

Financial highlights

• Sage Business Cloud revenue increased 15% to £574 million, with Cloud Native revenue up 24% to £253 million.

• Recurring revenue rose 10% to £675 million, with subscription revenue up 12% and subscription penetration reaching 84%.

• Organic total revenue growth accelerated to 10% year-over-year.

• Sequential ARR growth for Q1 was 2.5%, ahead of 2% in the prior year.

• Organic total revenue up 10% to £673m, recurring revenue up 10% to £654m, both on a constant currency basis excluding M&A.

Outlook and guidance

• Organic total revenue growth expected to be 9% or above for the full year.

• Operating margins anticipated to trend upward in FY 2026 and beyond.

• Guidance reflects strong Q1 momentum but considers tougher comparators in the second half.

• Full-year guidance as set out in FY25 results is reiterated, with continued focus on sustainable growth.