Sage breaks £2bn turnover benchmark in nine-month trading update

Sage Group, the Newcastle-based software vendor, has delivered accelerating nine-month revenue growth, crossing the £2 billion turnover threshold with reported revenues of £2.06 billion for the period ended 30 June 2026. This represents 11 percent growth compared to £1.86 billion in the corresponding prior-year period. The acceleration continued into Q3, with quarterly turnover rising 12 percent to £699 million from £627 million year-over-year, signaling strengthening customer demand and product traction across the vendor's core offerings.

The growth reflects Sage's strategic focus on cloud-native solutions and artificial intelligence expansion. Sage Business Cloud revenue increased 15 percent to £1.76 billion, while cloud-native product lines demonstrated exceptional momentum with a 25 percent surge to £794 million from £637 million. This 25 percent cloud-native growth substantially outpaces the company's overall 11 percent revenue growth, indicating successful market positioning in the shift toward cloud-based accounting and financial management platforms. CFO Jacqui Cartin attributed this performance to focused execution on deepening AI capabilities, scaling key products including Sage Intacct, and increasing customer value delivery.

Geographically, North America remained Sage's largest and fastest-growing region, with revenue jumping 14 percent to £932 million, driven by Sage Intacct momentum alongside continued expansion of Sage 50 and Sage 200 accounting and business management software. The UKIA region, comprising the UK, Ireland, Africa and APAC, generated £602 million (10 percent growth), fueled by Sage Intacct scaling, strong Sage 50 performance, and cloud-native product adoption. Europe contributed £528 million, up 7 percent, with growth supported by Sage X3, Sage 200, and integrated accounting, HR and payroll solutions.

Sage's transition to a recurring revenue model continued to accelerate, with recurring revenue climbing 11 percent to £2 billion and software subscription revenue rising 13 percent to £1.74 billion. This shift toward higher-margin subscription streams represents a fundamental strategic reorientation that provides greater revenue visibility and customer lifetime value potential. The balanced growth across new and existing customers, combined with the strength of cloud-native products and AI-enabled capabilities, positions Sage within a favorable market trend toward cloud-based, AI-assisted financial management solutions across mid-market and enterprise segments.