London, Jan 28, 2026, 09:15 GMT — Regular session
- Sage shares climbed 0.2% in early London trading, rebounding slightly after Tuesday’s 5.1% fall
- Q1 revenue climbed 10% to £674 million, with gains seen in both cloud and recurring revenue streams
- A filing revealed the company repurchased 998,691 shares on Jan. 27
Sage Group (SGE.L) shares ticked up 0.2% to 991.6 pence early Wednesday, following a 5.1% drop in the prior session. (Investing)
The accounting and payroll software company reported a 10% rise in first-quarter total revenue, reaching £674 million. North America led the gains with a 13% jump to £304 million, while the UK and Ireland (UKIA) increased 10% to £194 million and Europe climbed 7% to £176 million. Sage Business Cloud revenue surged 15% to £574 million, and recurring revenue grew 10% to £655 million, with subscription penetration holding steady at 84%. “Sage delivered a strong start to FY26, with Q1 organic revenue growth accelerating to 10%,” Chief Financial Officer Jacqui Cartin said, as the group confirmed its full-year guidance. (Organic growth excludes acquisitions and is measured at constant currency.)
The update offers an early glimpse at whether Sage’s push into cloud subscriptions is still gaining traction, following volatile moves in its share price this month. Europe’s tech sector led early gains on Wednesday, even as broader markets stalled. Investors are also turning their attention to the U.S. Federal Reserve’s decision later in the day for clues on interest rate direction. (Reuters)
Jefferies analyst Charles Brennan noted that organic recurring revenue growth picked up to 10.1%, up from 9.6% in the previous quarter. He described the result as “strong,” especially compared to the prior quarter’s exit annualised recurring revenue (ARR) growth of 9.9%. (Investing.com UK)
Sage revealed it repurchased 998,691 shares on Jan. 27, paying a volume-weighted average of 1,001.05 pence each. The top price reached 1,050.5 pence. The buyback plan is set to conclude by March 19, 2026, with all repurchased shares slated for cancellation, the company confirmed. (Investegate)
The market’s response has been uneven. The Q1 update focuses mainly on revenue and recurring figures, leaving investors waiting for the next report to gauge how spending and pricing impact profits.
The near-term calendar is packed. Sage will hold its annual general meeting on Feb. 5, with its final dividend payment set for Feb. 10, per an industry diary. (London South East)
Sage’s interim results on May 21 will be the next major focus, with investors looking for a more detailed update on progress through fiscal 2026. (Sage)
