Sopra Steria Group: Solid Growth Momentum in Q3 2026

PARIS--(BUSINESS WIRE)--Regulatory News:

Sopra Steria Group (Paris: SOP) generated revenue of €1,420.1 million in the third quarter of 2026, equating to growth of 7.9%. At constant scope and exchange rates, revenue grew by 4.3%.

Rajesh Krishnamurthy, Chief Executive Officer of Sopra Steria Group, commented:

“In the third quarter of 2026, Sopra Steria maintained its growth momentum in most of its geographies, driven in particular by the Defence, Security, Space and Aeronautics sectors, as well as by its Cybersecurity and Consulting businesses.

On the strength of this performance, we have decided, for the second time this year, to raise our full-year target for organic revenue growth in 2026. We are now targeting growth of between 2.5% and 3.0%, compared with between 2.0% and 2.5% previously.

In a challenging economic and geopolitical environment, our clients need to improve their performance while expanding their control over their critical technologies. Our position in Europe and our expertise, particularly in artificial intelligence and cybersecurity, enable us to help them implement these two priorities. We are ramping up the development of our services and solutions to harness these transformations and deliver tangible results for our clients.”

Comments on Q3 2026 business activity

Consolidated revenue in the third quarter totalled €1,420.1 million, up 7.9% year on year. There was a favourable calendar effect, with an additional business day with respect to 2025. After adjusting to exclude the impact of currency fluctuations (+€11.4 million) and changes in scope (+€33.8 million), organic growth came to 4.3%. The conclusion of the SFT programme, scheduled since early 2023, had a dilutive impact of 2.1 points. Excluding this impact, underlying organic growth came to 6.4%. Among the Group’s main strategic markets, business activity remained particularly robust in Defence, Security & Space (up 13%), Aeronautics (up 13%), Cybersecurity (up 18%) and Consulting (up 7%). Sopra Steria is boosting its investments across all markets with significant mid- to long-term growth potential.

Revenue for France (45% of the Group total) was €638.4 million. Organic growth remained strong (6.1%). The Energy & Telecoms sector continued to contract but all the other vertical markets showed positive growth. The best-performing vertical markets were the Public Sector; Defence, Security & Space; Transport; Financial Services; and Aeronautics. The Public Sector in particular – which accounted for around 15% of revenue for the France reporting unit – saw strong growth. The sector continued to be buoyed by major, highly critical digital transformation projects.

Revenue for the United Kingdom (16% of the Group total) was €232.3 million, representing organic growth of 8.2%. The reporting unit benefited from a favourable base effect, as revenue had been down 9.5% in Q3 2025. All its business activities (NHS SBS; the Aeronautics, Defence & Security sector; next-generation BPS; and new technologies) posted growth for the quarter. Revenue in Q4 is expected to be lower than in the previous year due to an unfavourable base effect. However, results for the full second half of the year should remain relatively stable with respect to H2 2025.

Excluding SFT, the Europe reporting unit posted revenue of €455.4 million, equating to organic growth of 5.7%. Scandinavia, Italy, Switzerland and Spain remained buoyant. Belgium saw a slight contraction, the Netherlands stabilised and Germany saw a return to growth. SFT posted revenue of €6.6 million (€32.7 million in Q3 2025). In total, the Europe reporting unit (33% of the Group total) saw revenue remain stable at €462.1 million (down 0.3%).

The Solutions reporting unit (6% of the Group total) posted revenue of €87.3 million, representing organic growth of 7.5%. The Human Resources Solutions business (which accounted for 65% of the reporting unit’s revenue) grew by 6.6%. The Property Management Solutions business continued to see sustained growth.

External growth and changes in scope

On 31 July 2026, Sopra Steria announced that it had finalised the acquisition of Digital Product Simulation to bolster its range of Product Lifecycle Management (PLM) solutions.

This transaction strengthens the Group’s expertise in digital engineering and rounds out its end-to-end range of PLM services, notably in simulation and the Dassault Systèmes 3DEXPERIENCE® platform. This business, which generated approximately €12 million¹ in revenue in 2025, has been consolidated in the Group’s accounts since 1 August 2026.

The acquisition of the Manufacturing Engineering business from Daher Industrial Services, announced on 28 May 2026, is expected to be finalised in the near future.

Share buyback programme

Retirement of 271,471 shares (equating to 1.4% of the share capital) was implemented on 28 October 2026, following the €40 million share buyback programme launched on 27 May 2026 and completed on 29 July 2026.

Workforce

At end-September 2026, taking into account recent acquisitions, the Group’s headcount² stood at 52,814 people, compared with 50,768 people at 30 September 2025.

At the same date, 8,949 staff were employed at international service centres.

The workforce attrition rate³ was 13.8% (vs 15.3% at 30 September 2025).

Financial targets for 2026

Based on growth achieved in the third quarter of 2026 and the outlook for the fourth quarter, Sopra Steria has raised its full-year target for organic revenue growth. The Group’s other targets for 2026 are confirmed:

• Organic revenue growth of between 2.5% and 3.0% (compared with between 2.0% and 2.5% previously), including a non-recurring dilutive impact of around 2 points arising from the conclusion of the SFT programme
• Operating margin on business activity of at least 9.5%
• Free cash flow of around 5% of revenue

Work related to the implementation of IFRS 18

The Group is continuing its work to analyse IFRS 18, the application of which is mandatory for accounting periods beginning on or after 1 January 2027. At this stage, the Group is planning to retain “Operating profit on business activity” as its main indicator of operating performance on the income statement and does not expect the application of this standard to have a material impact.

Meeting to report Q3 2026 revenue

Revenue for the third quarter of 2026 will be presented to financial analysts and investors via a bilingual (French and English) webcast to be held on Thursday, 29 October 2026 at 8:30 a.m. CET.

• Register for the French-language webcast here
• Register for the English-language webcast here

Practical information about this conference call can be found in the ‘Investors’ section of the Group’s website: Investors | Sopra Steria

Upcoming financial releases

Thursday, 25 February 2027 (8:30 a.m.): Meeting to report full-year results for 2026
Friday, 23 April 2027 (8:30 a.m.): Meeting to report revenue for Q1 2027
Wednesday, 12 May 2027 (2:30 p.m.): General Meeting of Shareholders
Friday, 30 July 2027 (8:30 a.m.): Meeting to report results for H1 2027
Wednesday, 27 October 2027 (8:30 a.m.): Meeting to report revenue for Q3 2027
Thursday, 24 February 2028 (8:30 a.m.): Meeting to report full-year results for 2027

Glossary

- Restated revenue: Revenue for the prior year, expressed on the basis of the scope and exchange rates for the current year.
- Organic revenue growth: Increase in revenue between the period under review and restated revenue for the same period in the prior financial year.
- EBITDA: This measure, as defined in the Universal Registration Document, is equal to consolidated operating profit on business activity after adding back depreciation, amortisation and provisions included in operating profit on business activity.
- Free cash flow: Free cash flow is defined as net cash from operations; less investments (net of disposals) in property, plant and equipment, and intangible assets; less lease payments; less net interest paid; and less additional contributions to address any deficits in defined-benefit pension plans.
- Operating profit on business activity: This measure, as defined in the Universal Registration Document, is equal to profit from recurring operations adjusted to exclude the share-based payment expense for stock options and free shares and charges to amortisation of allocated intangible assets.
- Profit from recurring operations: This measure is equal to operating profit before other operating income and expenses, which includes any particularly significant items of operating income and expense that are unusual, abnormal, infrequent or not foreseeable, presented separately in order to give a clearer picture of performance based on ordinary activities.
- Basic recurring earnings per share: This measure is equal to “Basic earnings per share” before “Other operating income and expenses” net of tax.
- Return on capital employed (RoCE): (Profit from recurring operations before tax + Profit from equity-accounted companies) / (Equity + Net financial debt).
- Downtime: Number of days between two contracts (excluding training, sick leave, other leave and pre-sales) divided by the total number of business days.

Disclaimer
This document contains forward-looking information subject to certain risks and uncertainties that may affect the Group’s future growth and financial results. Readers are reminded that licence agreements, which often represent investments for clients, are signed in greater numbers in the second half of the year, with varying impacts on end-of-year performance. Actual outcomes and results may differ from those described in this document due to operational risks and uncertainties. More detailed information on the potential risks that may affect the Group’s financial results can be found in the 2025 Universal Registration Document filed with the Autorité des Marchés Financiers (AMF) on 13 March 2026 (see pages 42 to 50 in particular). Sopra Steria does not undertake any obligation to update the forward-looking information contained in this document beyond what is required by current laws and regulations. The distribution of this document in certain countries may be subject to the laws and regulations in force. Persons physically present in countries where this document is released, published or distributed should enquire as to any applicable restrictions and should comply with those restrictions.

About Sopra Steria
Sopra Steria is a European tech leader that helps organisations implement their strategic plans through its expertise in consulting, integration, business solutions, artificial intelligence and cybersecurity. With digital sovereignty, infrastructure resilience and data control now seen as essential priorities, Sopra Steria contributes to reinforcing Europe’s strategic autonomy, particularly in critical infrastructure and missions of state in the fields of financial services, defence, space, aeronautics and public services. With 51,000 employees in nearly 30 countries and €5.6 billion in revenue in 2025, Sopra Steria helps its clients grow more competitive and unlock tangible, lasting results, combining an in-depth understanding of businesses and technologies with a collaborative approach, with the aim of providing sustainable solutions to the most pressing challenges of our time.

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Sopra Steria (SOP) is listed on Euronext Paris (Compartment A) – ISIN: FR0000050809
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