Sopra Steria Group SA

Europe's largest established technology companies are emerging as unexpected beneficiaries of the AI boom, according to recent earnings. SAP, Capgemini, Sopra Steria, and OVHcloud have all reported stronger demand, faster growth, or upgraded outlooks as large organizations move from experimenting with artificial intelligence to deploying it across their operations. SAP's cloud backlog rose 26% at constant currencies to €22.9 billion, while Capgemini raised its annual growth target after bookings climbed 9.2% and Sopra Steria upgraded its outlook following organic growth acceleration to 5.3%. OVHcloud's public-cloud revenue rose 20.2% in its third quarter, providing early evidence that demand for European-controlled AI infrastructure is translating into commercial growth. The trend reflects the growing complexity of making AI work with existing software, data, and business processes, as well as rising demand for greater control over AI deployment in sectors such as defense, aerospace, and critical infrastructure.

Sopra Steria has completed its acquisition of Digital Product Simulation through its subsidiary CIMPA. The deal bolsters the group's Product Lifecycle Management solutions and adds over 115 expert engineers, with Digital Product Simulation reporting IFRS revenue of around €12 million in 2025. The acquisition enhances Sopra Steria's capabilities in simulation and the 3DEXPERIENCE solution from Dassault Systèmes, strengthening support for industrial clients in aeronautics, defence, and nuclear sectors. Digital Product Simulation will be consolidated from 1st August 2026.

Sopra Steria has raised its full-year organic revenue growth target to between 2.0% and 2.5%, up from a previous range of 1.0% to 2.0%, following a solid first half of 2026. Revenue for the first half reached €2,958.9 million, up 4.1% in total, with organic growth of 3.0% and underlying organic growth of 4.9% when excluding the dilutive impact of the SFT programme conclusion. Operating margin on business activity improved to 9.6% from 9.2% a year earlier, and net profit attributable to the Group rose 3.0% to €146.3 million. The company confirmed its other 2026 targets, including an operating margin of at least 9.5% and free cash flow of around 5% of revenue.