Business
Trading update for the 3 months ended 31 Dec 2025
Sage Group plc reported a strong start to fiscal year 2026, with total revenue for the three months ended December 31, 2025, increasing by 10% to £674 million, driven by a 14% organic growth in Sage Business Cloud revenue to £574 million. North America showed robust performance with a 13% revenue increase to £304 million, while the UKIA region grew 10% to £194 million, and Europe saw a 7% rise to £176 million. Recurring revenue grew 10% to £655 million, and software subscription revenue increased 12% to £568 million, with subscription penetration reaching 84%. The company reiterates its full-year guidance, focusing on efficient, sustainable growth. Disclaimer*
About this update from Sage Group Plc
[{"type":"text","content":"\n\n \nThe Sage Group plc\nTrading update for the three months ended 31 December 2025\n \nThe Sage Group plc (FTSE: SGE), a leader in accounting, financial, HR and payroll technology for small and mid-sized businesses, today issues a trading update for the three months ended 31 December 2025[i].\nJacqui Cartin, Chief Financial Officer, commented:\n\"Sage delivered a strong start to FY26, with Q1 organic revenue growth accelerating to 10%, supported by the continued execution of our growth strategy. We are investing in innovation across our AI-powered platform, helping small and mid-sized businesses solve their day-to-day challenges and work more productively. We reiterate our full-year guidance, as set out in our FY25 results announcement, and remain focused on driving efficient, sustainable growth and long-term value for all stakeholders.\"\n\n\n\n\nUnderlying Revenue Performance[ii]\n\n\nQ1 26\n\n\nQ1 25\n\n\n% Growth\n\n\nOrganic\n% Growth\n\n\n\n\n\n\n\n \n\n\n \n\n\n \n\n\n \n\n\n\n\nTotal Revenue\n\n\n£674m\n\n\n£610m\n\n\n+10%\n\n\n+10%\n\n\n\n\n of which Sage Business Cloud\n\n\n£574m\n\n\n£500m\n\n\n+15%\n\n\n+14%\n\n\n\n\n\n\n\n\n\n\n\n\n\n \n\n\n \n\n\n\n\nTotal Revenue by Region\n\n\n \n\n\n \n\n\n \n\n\n \n\n\n\n\nNorth America\n\n\n£304m\n\n\n£268m\n\n\n+13%\n\n\n+12%\n\n\n\n\nUKIA\n\n\n£194m\n\n\n£177m\n\n\n+10%\n\n\n+10%\n\n\n\n\nEurope\n\n\n£176m\n\n\n£165m\n\n\n+7%\n\n\n+7%\n\n\n\n\n \n\n\n \n\n\n \n\n\n \n\n\n \n\n\n\n\n Total revenue increased by 10% to £674m in the first quarter, with all regions performing well.\nIn North America, revenue increased by 13% to £304m, with a strong performance from Sage Intacct together with continued growth in Sage 200 and Sage 50. In the UKIA region, revenue grew by 10% to £194m, driven by the rapid scaling of Sage Intacct alongside continued growth in small business solutions, including Sage Accounting and Sage 50. In Europe, revenue increased by 7% to £176m, with good growth across our accounting, HR and payroll solutions.\nSage Business Cloud revenue increased by 15% to £574m, driven by balanced growth from both new and existing customers, including cloud native revenue growth of 24% to £253m (Q1 25: £205m).\nRecurring revenue grew by 10% to £655m (Q1 25: £593m), r...