Business
Results for the six months to 31 March 2026
Sage Group PLC reported a strong first half with underlying total revenue up 11% to £1,363 million and underlying operating profit increasing 15% to £326 million, driving a margin expansion to 23.9%. Annualised Recurring Revenue (ARR) grew 11% to £2,727 million, supported by a 102% renewal rate by value. The company also saw its interim dividend increase by 8% to 8.05p per share and announced a £300 million share buyback program. Sage raised its full-year organic total revenue growth expectation to above 9%, citing accelerating growth driven by its AI strategy and strong performance across its cloud solutions. Disclaimer*
About this update from Sage Group Plc
[{"type":"text","content":"\n\nThe Sage Group plc\nResults for the six months to 31 March 2026 (unaudited)\n21 May 2026\n \nAccelerating growth driven by execution of AI strategy\nSteve Hare, Chief Executive Officer, commented:\n\"Sage delivered an excellent first-half performance, with double-digit revenue growth, further margin expansion and strong cash flows. This reflects the focused execution of our strategy and a deep understanding of our customers' needs.\n\"Small and mid-sized businesses trust Sage to run their mission-critical finance, payroll and HR workflows, where accuracy and compliance are non-negotiable. Our intelligent agents are already helping finance teams accelerate cash flows, close the books faster, plan more effectively and turn insight into action, without compromising control or accountability.\n\"By embedding AI directly into our customers' day-to-day work, we are making our solutions more valuable, reinforcing our competitive advantages, and driving efficient, sustainable growth.\n\"With our trusted scalable platform, growing agent portfolio and strong momentum supported by investment across the business, I am confident in Sage's ability to deliver growth and long term value for all stakeholders.\"\n\n\n\n\nUnderlying Financial APMs[1]\n\n\nH1 26\n\n\nH1 25[2]\n\n\nChange\n\n\nOrganic\nChange\n\n\n\n\nAnnualised Recurring Revenue (ARR)\n\n\n£2,727m\n\n\n£2,453m\n\n\n+11%\n\n\n+11%\n\n\n\n\nUnderlying Total Revenue\n\n\n£1,363m\n\n\n£1,231m\n\n\n+11%\n\n\n+10%\n\n\n\n\nUnderlying Operating Profit\n\n\n£326m\n\n\n£285m\n\n\n+15%\n\n\n+14%\n\n\n\n\n % Underlying Operating Profit Margin\n\n\n23.9%\n\n\n23.1%\n\n\n+0.8 ppts\n\n\n+0.9 ppts\n\n\n\n\nUnderlying EBITDA\n\n\n£375m\n\n\n£331m\n\n\n+14%\n\n\n\n\n\n\n\n % Underlying EBITDA Margin\n\n\n27.6%\n\n\n26.8%\n\n\n+0.8ppts\n\n\n \n\n\n\n\nUnderlying Basic EPS (p)\n\n\n23.7p\n\n\n20.5p\n\n\n+16%\n\n\n\n\n\n\n\nUnderlying Cash Conversion\n\n\n116%\n\n\n115%\n\n\n+1 ppt\n\n\n\n\n\n\n\nStatutory Measures\n\n\nH1 26\n\n\nH1 25\n\n\nChange\n\n\n \n\n\n\n\nRevenue\n\n\n£1,363m\n\n\n£1,242m\n\n\n+10%\n\n\n\n\n\n\n\nOperating Profit\n\n\n£293m\n\n\n£255m\n\n\n+15%\n\n\n\n\n\n\n\n % Operating Profit Margin\n\n\n21.5%\n\n\n20.5%\n\n\n+1.0 ppts\n\n\n \n\n\n\n\nBasic EPS (p)\n\n\n20.7p\n\n\n18.2p\n\n\n+14...