**Summary**
The Sage Group plc, a leader in accounting, financial, HR, and payroll technology for small and mid-sized businesses, released a trading update for the three months ended 31 December 2025. The company reported strong performance, with total revenue increasing by 10% to £674 million, driven by growth across all regions and product segments. Key highlights include
1. **Revenue Growth**
Total revenue grew by 10% to £674 million, with Sage Business Cloud revenue up 15% to £574 million.
North America led with 13% growth, followed by 10% in the UKIA region and 7% in Europe.
2. **Recurring Revenue**
Recurring revenue increased by 10% to £655 million, with software subscription revenue up 12% to £568 million, achieving 84% subscription penetration.
3. **Strategic Focus**
Continued investment in AI-powered innovation to support small and mid-sized businesses.
Strong performance from Sage IntacctSage 200Sage 50and cloud-native solutions.
4. **Outlook**
Sage reiterated its full-year guidance, emphasizing sustainable growth and long-term value creation for stakeholders.
Chief Financial Officer Jacqui Cartin highlighted the company’s strong start to FY26, supported by its growth strategy and innovation efforts. The update underscores Sage’s commitment to digitalizing business processes and addressing global challenges like digital and economic inequality and the climate crisis.