Sopra Steria Group (SOP) Q1 2026 TU earnings summary

Executive summary

• Q1 2026 revenue reached €1.463 billion, up 3.4% year-over-year, confirming a rebound in business activity; organic growth was 4.4% excluding the non-recurring SST/SFT program impact.

• All reporting units (France, UK, Europe ex-SST/SFT, Solutions) posted growth, with notable rebounds in aeronautics (+15%) and defense/security/space (+7%).

• Consulting business rebounded with 5% growth.

• Workforce increased to 51,163, with international service centres growing 12.7% year-over-year.

• Strong demand for technology-driven transformation, especially in AI, cybersecurity, and digital sovereignty.

Financial highlights

• France revenue: €650.1 million, organic growth +7.2% year-over-year.

• UK revenue: €220 million, organic growth +4.2% year-over-year, driven by NHS SBS and private sector growth.

• Europe (ex-SST/SFT) returned to growth with organic growth of 1.6%; SST/SFT revenue dropped as planned.

• Solutions revenue: €85.3 million, organic growth +0.9%.

Outlook and guidance

• 2026 goals for organic revenue growth, operating margin, and cash generation confirmed; full-year targets: organic revenue growth of 1.0–2.0% (including ~2pt negative SST/SFT impact), operating margin at least 9.5%, and free cash flow around 5% of revenue.

• Annual guidance: group growth 1–2%, excluding SST 3–4%.

• No change to 2028 outlook; offshoring strategy and AI investments continue.

• Expecting progressive improvement and return to growth in Germany, Belgium, and Netherlands in H2 2026.

• Single-digit growth expected in France for the remainder of the year as comparison basis becomes less favorable.