Sage Reports Strong Q3 Results Amid AI Push
Sage, the FTSE-100 accounting and payroll specialist, has reported an 11% increase in total revenue to more than £2bn for the nine months ending June, as the company continues to invest in artificial intelligence (AI) capabilities. The software giant says customers are showing growing interest in AI tools to enhance their financial operations.
Revenue Growth Across All Regions
In its latest trading update to the London Stock Exchange, Sage revealed that North America revenue rose 14% to £932m, driven by strong performances from Sage Intacct, Sage 50, and Sage 200 products. The UK, Ireland, and Africa region saw a 10% increase to £602m, with Sage Intacct scaling rapidly and cloud-native solutions for small businesses performing well. European revenue grew 7% to £528m, supported by Sage X3, Sage 200, and other accounting, HR, and payroll solutions.
Cloud and AI Drive Momentum
Sage Business Cloud revenue grew 15% to over £1.7bn, reflecting increased adoption of cloud solutions and expanded AI features. Within that segment, cloud-native revenue surged 25% to £794m. Overall third-quarter revenue rose 12% to £699m, with software subscription revenue up 13% to more than £1.7bn. The company expects organic revenue growth to exceed 9% for the full year.
CEO Highlights AI Adoption
Chief Executive Steve Hare told investors that customers are increasingly integrating AI into their accounts payable processes and using the technology to identify unusual transactions. He noted that regulatory changes such as the UK's Making Tax Digital initiative and the growing prevalence of e-invoicing in Europe are providing favourable tailwinds for Sage's products.
CFO Confident in Sustainable Growth
Chief Financial Officer Jacqui Cartin said: 'Sage has delivered nine months of accelerating revenue growth, with momentum strengthening further in the third quarter. This reflects focused execution as we deepen AI capabilities across our platform, scale key products including Sage Intacct, and increase the value customers get from Sage. Demand from new and existing customers remains strong, with small and mid-sized businesses increasingly relying on Sage for finance, HR and payroll workflows, where getting it right is essential. This gives us confidence in delivering sustainable, efficient growth, and we reiterate our guidance for the full year.'
