London, Jan 29, 2026, 09:42 GMT — Regular session underway.
- Sage shares dipped further on Thursday, briefly hitting their lowest point in a year.
- A new broker target cut and a share buyback announcement moved into the spotlight.
- Investors are already eyeing the company’s upcoming AGM and the dates for the next set of results.
Sage Group (SGE.L) shares dropped 2% on Thursday, sliding under 1,000 pence to hit a one-year low. By 0942 GMT, the stock was trading at 975.2 pence, after hitting 967 pence earlier—the lowest in a year. (London South East)
This move hits because it leaves Sage struggling after a series of company updates that, at face value, indicated quicker growth. Dropping to new lows often shakes confidence in widely held, index-heavy UK stocks.
Sage is still working to prove it can grow as it moves more business to cloud subscriptions and rolls out new AI features. Now, the conversation is less theoretical and more focused on pricing power, churn rates, and what the upcoming guidance update will reveal.
In its trading update for the quarter ending Dec. 31, Sage reported total revenue climbed 10% to 674 million pounds, with Sage Business Cloud revenue jumping 15% to 574 million pounds. Chief financial officer Jacqui Cartin described the group’s performance as “a strong start to FY26” and reaffirmed its full-year guidance. Sage’s “organic” growth figure excludes currency fluctuations and acquisitions.
Broker sentiment moved as well. On Jan. 28, Deutsche Bank lowered its price target for Sage to 1,150 pence from 1,200 pence, maintaining a “hold” rating, according to broker data gathered by London South East. (London South East)
A buyback is quietly underway. Sage repurchased 1,644,504 shares on Jan. 28 at a volume-weighted average price of 1,003.2 pence, with plans to cancel them. The programme must wrap up by March 19, 2026, at the latest. (Investegate)
During the Q1 call, management emphasized the growth trajectory and the AI narrative, while analysts focused on potential risks. The company stuck to its guidance of “9% or above” for organic total revenue growth and said margins should continue improving. A Bank of America analyst raised concerns about GenAI threats from “new players like Rillet,” prompting CEO Steve Hare to respond that “accuracy is not up for debate” in accounting. (Sage)
But here’s the snag: the shares keep falling, despite buybacks and steady guidance. Should demand from small businesses fade or AI-fueled competition squeeze prices, investors could get more skeptical about how long subscription growth can last.
The annual general meeting is scheduled for Feb. 5, with shareholders expected to vote on a final dividend of 14.40 pence, payable on Feb. 10. The company’s calendar shows the next major results event as the half-year report on May 21.
Traders will be keeping an eye on whether Sage stays above Thursday’s 967p low and if additional brokers cut their targets. The next major event is Feb. 5, when investors expect updates on AI pricing and guidance for the full year.
