London, Jan 30, 2026, 09:33 GMT — Regular session
- Sage Group shares climbed roughly 1.7%, hitting about 971 pence in early London trading.
- This week, the stock swung sharply as investors reacted to a Q1 update and renewed buyback activity.
- The key question now is if cloud subscription growth will sustain through the interim results on May 21.
Shares of Sage Group (SGE.L) edged higher in early Friday trading, climbing roughly 1.7% to 971 pence by 0931 GMT following two tough sessions. The UK accounting software firm’s stock remained confined to a narrow band between 956 and 974 pence. 1
The bounce is significant as Sage has been hunting for support close to its yearly lows, and software stocks have shown volatility. Investors need confirmation that subscription growth isn’t merely steady, but resilient in a market now quick to penalize any signs of weakness.
Sage slipped 4.1% on Thursday, ending the day at 955 pence. This drop came despite a stronger showing across the FTSE 100, according to market data. 2
Late Thursday, Sage repurchased 1,766,364 shares, paying between 945.8 pence and 994.2 pence each, with a volume-weighted average price of 961.54 pence. The company confirmed these shares will be cancelled, as part of a buyback programme announced last November, set to conclude by March 19. 3
Sage announced share buybacks following its Q1 trading update earlier this week. The company reported organic revenue growth of 10% for the quarter ending Dec. 31, excluding currency and acquisition effects, pushing total revenue to £674 million. Sage Business Cloud revenue climbed 15% to £574 million, while recurring revenue hit £655 million, up 10%. CFO Jacqui Cartin described it as a “strong start to FY26” and confirmed the full-year outlook. 4
Investors dug into the details: subscription penetration reached 84% this quarter. The company highlighted strong momentum in annualised recurring revenue (ARR), which tracks subscription run-rate. This is the crucial driver Sage needs to push further into cloud services and AI features while keeping pricing intact.
But the story goes beyond Sage’s results. European software stocks took a hit Thursday after SAP’s cloud outlook for 2026 came up short, dragging Sage down more than 3%, hitting levels not seen in months, according to a Reuters report. “In the current context you can’t miss by even the slightest portion,” said Oddo BHF analyst Nicolas David, highlighting growing skepticism about software names as money shifts toward semiconductors. 5
Sage’s next major event is its H1 FY26 interim results, set for May 21. Until then, traders will track daily buyback updates, gauge signals from leading software rivals, and see if Sage can sustain cloud growth to lure back jittery investors. 6
