Sage, the accounting and payroll software giant, has reported double-digit revenue and profit growth in what its CEO describes as an excellent first half. The Tyneside-based FTSE100 firm highlighted that cloud products drove much of the growth, with customers increasingly using its AI systems.
Financial Highlights
In unaudited results for the six months to March, Sage posted 10% growth in statutory revenue to £1.36bn and a 15% leap in statutory operating profit to £293m. Annualised recurring revenue, a key metric, grew 11% to £2.72bn, while underlying operating profit rose 14% to £326m.
Regional Performance
All markets delivered growth, led by North America with 14% revenue growth, driven by customers in not-for-profit, construction, real estate, and financial services sectors, many adopting AI-powered functionality. The UK, Ireland, and Africa reported 10% growth, while Europe saw 7% revenue growth.
Outlook Upgrade
The strong performance prompted a modest upgrade in full-year outlook, with total organic revenue growth expected above 9%.
AI Integration
Sage has embedded AI into customer workflows, launching new agents and expanding its flagship digital assistant, Copilot. Copilot is now integrated into products like Sage Intacct and Sage Sales Management. The firm also uses AI internally across engineering, customer support, sales, and marketing.
Steve Hare, CEO, said: "Sage delivered an excellent first-half performance, with double-digit revenue growth, further margin expansion, and strong cash flows. This reflects focused execution and deep customer understanding. Small and mid-sized businesses trust Sage for mission-critical finance, payroll, and HR workflows where accuracy and compliance are essential. Our intelligent agents help finance teams accelerate cash flows, close books faster, plan effectively, and turn insight into action without compromising control or accountability. By embedding AI into daily work, we make solutions more valuable, reinforce competitive advantages, and drive efficient, sustainable growth. With our trusted platform, growing agent portfolio, and strong momentum, I am confident in Sage's ability to deliver growth and long-term value."
