Sage backs outlook as Sage Business Cloud demand supports sales growth

Sage Group PLC on Wednesday reiterated annual guidance with revenue growth aided by increased sales of its business cloud product.

The Newcastle upon Tyne-based accountancy software provider said total revenue increased by 9.4% to £1.86 billion in the first nine months of 2025 from £1.70 billion a year prior.

Of this, sales of Sage Business Cloud grew 13% to £1.54 billion from £1.36 billion a year ago, or by 12% on an organic basis. Here, sales were driven by balanced growth from both new and existing customers, Sage said, including cloud native revenue growth of 22% to £645 million from £528 million.

Chief Financial Officer Jonathan Howell commented: ‘Sage has performed well in the first nine months of the year, in line with our expectations, delivering good levels of growth despite ongoing macroeconomic uncertainty. Accordingly, we reiterate our guidance for the full year.’

In response, shares in Sage were marginally lower at 1,257.00 pence in London on Wednesday morning.

In North America, revenue grew by 11% to £846 million, with a strong performance from Sage Intacct, together with continuing growth in Sage 200 and Sage 50.

In the UK, Ireland & Africa region, revenue rose by 9% to £539 million, as Sage Intacct continues to ‘scale rapidly’, supported by ongoing growth in small business solutions, Sage 50 and Sage 200.

In Europe, revenue grew by 7% to £477 million, with good growth across accounting, HR and payroll solutions.

Recurring revenue grew by 10% to £1.81 billion from £1.65 billion. Software subscription revenue grew by 11% to £1.55 billion from £1.39 billion.

In the third quarter of 2025, Sage said total revenue increased by 9.3% to £620 million from £567 million, driven by continuing growth across the Sage Business Cloud portfolio.

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