Sage Group PLC on Tuesday affirmed its annual outlook after a ‘strong start’ to the financial year.
Sage shares rose 2.7% to 1,071.00 pence each in London on Tuesday morning.
The accountancy software provider said revenue in the first quarter to December 31 shot up 10% to £674 million from £610 million. Growth on an organic basis was also 10%.
Swiss bank UBS had expected Sage to report growth of 9.3% for the quarter.
The Newcastle upon Tyne, England-based firm said it was a ‘strong start’ to financial 2026. Organic revenue growth accelerated from the 9% seen over the course of the prior financial year.
‘We are investing in innovation across our AI-powered platform, helping small and mid-sized businesses solve their day-to-day challenges and work more productively,’ Chief Financial Officer Jacqui Cartin said.
Sage backed its annual guidance, expecting organic total revenue growth to be ‘9% or above’.
By geography, first quarter revenue rose 13% in North America to £304 million, in the UK, Ireland, Asia Pacific & Africa by 10% to £194 million and in Europe by 7% to £176 million.
On an organic basis, North America revenue rose 12%, UKIA by 10% and Europe by 7%.
Sage noted that sterling strengthened on the dollar during the period, but surrendered some ground on the euro. This meant a ‘broadly neutral exchange rate impact’.
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