France's Sopra Steria raises 2026 growth target again as defence, cybersecurity lift Q3 sales

Sopra Steria Lifts Growth Target Again on Defence, Cybersecurity Demand in Q3

Quarterly Performance and Strategic Highlights

Oct 29 (Reuters) - IT consulting firm Sopra Steria on Thursday lifted its annual organic revenue growth target to 2.5%-3.0% from 2.0%-2.5% after quarterly sales rose 7.9% to €1.42 billion ($1.59 billion), driven by its defence, aerospace, and cybersecurity segments. 

This marks the company's second upgrade this year, highlighting how demand from defence and public sector clients, and for cybersecurity are carrying Sopra Steria through a tough economic backdrop.

Key Financial Metrics

Here are some details:

Organic Growth Acceleration

• Organic growth accelerated to 4.3% in the quarter from 3.0% in the first half, or 6.4% excluding the end of its SFT programme for Germany’s Sparda banks 

Segment Revenue Breakdown

• Defence, security and space revenue rose 13%, as did aeronautics, while revenue from cybersecurity jumped 18%

Geographic Performance

• In France, its biggest market, organic growth rose 6.1%, led by the public sector, which makes up about 15% of French revenue and was boosted by a large digital transformation project

Confirmed Financial Targets

• Sopra Steria confirmed its targets for operating margin on business activity of at least 9.5% and free cash flow of around 5% of revenue

Executive Commentary

CEO Statement

• “Our clients need to improve their performance while expanding their control over their critical technologies,” Chief Executive Rajesh Krishnamurthy said, pointing to the group’s European base

Currency Exchange Rate

($1 = 0.8959 euros)

(Reporting by Leo Marchandon in Gdansk; Editing by Sonia Cheema)