Sage Group’s Q1 26 Revenue Climbs, Guidance Reaffirmed

The Sage Group plc (FTSE: SGE) reported a strong start to fiscal year 2026, with first-quarter organic revenue growth accelerating to 10%.

The company, a provider of accounting, financial, HR, and payroll technology for small and mid-sized businesses, reiterated its full-year guidance, signaling confidence in its growth strategy.

Total revenue for the quarter reached £674 million, a 10% increase compared to £610 million in the first quarter of 2025. Sage Business Cloud revenue fueled this growth, rising 15% to £574 million. The markets reacted positively to the news, suggesting renewed confidence in Sage's ability to execute its strategic objectives.

Recurring revenue grew by 10% to £655 million, reflecting continued momentum in Annualised Recurring Revenue (ARR) during the quarter. Software subscription revenue experienced a 12% surge, reaching £568 million, driving subscription penetration to 84%. This shift towards subscription-based models indicates a strengthening of Sage's long-term revenue visibility.

Regionally, North America led the charge with a 13% revenue increase to £304 million, driven by Sage Intacct and continued growth in Sage 200 and Sage 50.

The UKIA region saw a 10% revenue increase to £194 million, fueled by the scaling of Sage Intacct and growth in small business solutions. Europe experienced a 7% revenue increase to £176 million, with solid growth across accounting, HR, and payroll solutions.

Jacqui Cartin, Chief Financial Officer, commented, “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.”