Atos (ATO) Q2 2026 earnings summary

Executive summary

• Achieved strong H1 2026 performance with improved profitability and commercial momentum, despite organic revenue decline year-over-year, confirming full-year targets and ongoing cost restructuring through the Genesis program.

• Commercial traction increased, with significant contract wins and a growing qualified pipeline, especially in AI, cybersecurity, and sovereignty.

• Employee engagement and morale improved, with voluntary attrition down to 11.8% and Net Promoter Score up 10.8 points.

• Major divestitures included Advanced Computing (Bull), Ideal GRP, and South American operations, aligning with the Genesis transformation plan.

• Genesis transformation plan delivered cost savings ahead of schedule, supporting margin expansion.

Financial highlights

• H1 2026 revenue at current perimeter: €3,304 million, down 8.9% year-over-year; operating margin at current perimeter: €190 million (5.7% of revenue), up €57 million and +2.1 pts year-over-year.

• Net loss Group share: €-504 million for H1 2026, improved from €-696 million in H1 2025, mainly due to restructuring and refinancing costs.

• Net change in cash: €-120 million, reflecting seasonality and restructuring outflows.

• Net debt at June 30, 2026: €1,998 million (€1,193 million including IFRS 9 adjustment); liquidity at €1,805 million as of June 30, 2026 (€948 million after July debt repayment).

• Free cash flow was negative at -€302 million, compared to -€271 million in H1 2025.

Outlook and guidance

• FY 2026 organic revenue growth expected at the low end of the -1% to -5% range, with operating margin targeted at approximately 7%.

• Positive net change in cash anticipated for H2 2026, with net debt projected to decrease by year-end.

• Acceleration of profitable growth and cash generation expected in 2027–2028, with organic revenue CAGR of 5–7% and operating margin target of ~10% by FY 2028.

• Target leverage ratio below 1.5x by year-end 2028.