OVHcloud revenue rises 7.2%, exceeding upper end of growth guidance
Key Facts
OVHcloud reported like-for-like revenue growth of 7.2% in its fiscal 2026 results, exceeding the upper end of its previous organic growth guidance. Annual revenue reached 1,145.1 million euros, according to the company's earnings statement. That compared with revenue of 1,084.6 million euros in the previous fiscal year, while reported growth was 5.6%. The company had set a target range for organic revenue growth of between 5% and 7% in its third-quarter disclosure. Growth above that range was accompanied by higher earnings and a turn to positive free cash flow after debt service.
Adjusted earnings before interest, taxes, depreciation and amortization rose to 480.5 million euros in fiscal 2026, according to the company's statement. These earnings stood at 437.8 million euros in the previous fiscal year. Growth of 9.7% outpaced revenue growth on both a reported and like-for-like basis. The adjusted EBITDA margin improved to 42.0%, from 40.4% a year earlier. On the bottom line, consolidated net profit rose to 9.4 million euros, compared with 0.4 million euros in the previous year.
Free cash flow after debt service, as defined by the company, was positive at 24.7 million euros, compared with negative 27.0 million euros the previous year. Octave Klaba, chairman and chief executive, said: "We managed our inventory and capital expenditure with great precision while keeping operating costs under control." Adjusted capital expenditure represented 32.6% of revenue, excluding advance purchases of components for use the following year. The company brought forward purchases of memory components and drives worth approximately 49.5 million euros during fiscal 2026. It said these purchases were intended for use in fiscal 2027 and had been brought forward in response to rising component costs.
By business segment, the earnings presentation showed like-for-like public cloud revenue growth of 18.9% during the year, compared with private cloud growth of 4.5%. Public cloud growth accelerated to 24.3% in the final quarter, exceeding its full-year pace. At group level, like-for-like revenue growth reached 10.5% in the final quarter. Third-quarter revenue had reached 289.6 million euros, up 6.9% on the same basis, according to the disclosure for that period. In the first half, the company recorded revenue of 555.3 million euros, up 5.5% on a like-for-like basis.
In the session before the results announcement, the company's shares closed at 14.82 euros, according to historical prices published on Investing.com. The stock rose 0.34% that day, 19 October 2026. Growth guidance had weighed on the shares when the previous year's results were announced, after falling short of market expectations, according to Reuters. In its coverage dated 21 October 2025, the news agency reported that the shares had fallen about 18% by 08:42 GMT. It said at the time that the stock was on course for its biggest daily decline on record if those losses held through the close.
For fiscal 2027, OVHcloud targets like-for-like revenue growth of more than 10%, according to its annual results presentation. It also targets an adjusted EBITDA margin above 42.5%. The company said it had redefined its artificial intelligence strategy and would enter the deployment phase in 2027. The earnings presentation set the company's AI summit for 19 November 2026. The company is scheduled to publish its fiscal 2027 first-quarter revenue on 7 January 2027, according to the financial calendar in its statement.