Sopra Steria reported a 3.0% year-on-year increase in net profit attributable to the Group to €146.3 million for the first half of 2026, driven by accelerating underlying organic growth that reached 5.3% in the second quarter. The Paris-listed technology services group raised its full-year organic revenue growth target to between 2.0% and 2.5%, up from the previous guidance of 1.0% to 2.0%, citing strong momentum in vertical markets such as Aeronautics and Defence, Security & Space. This upward revision reflects management's confidence in its positioning within digital sovereignty and AI-driven transformation projects across Europe.

The company has made its half-yearly Financial Report for the period ended June 30, 2026, publicly available and filed it with the Autorité des Marchés Financiers (AMF). The report includes the business review, condensed consolidated financial statements, and the Statutory Auditors’ review report. At its meeting on July 28, 2026, the Board of Directors, chaired by Pierre Pasquier, approved the financial statements. Rajesh Krishnamurthy, Chief Executive Officer of Sopra Steria Group, attributed the performance to the solidity of the business model and increasing client trust in strategic markets.

Total revenue for H1 2026 stood at €2,958.9 million, representing a 4.1% total increase compared to €2,843.7 million in H1 2025. Organic revenue growth was 3.0%, while underlying organic growth—excluding the dilutive impact of the concluding SFT programme—reached 4.9%. Operating profit on business activity rose 8.8% to €284.5 million, with the operating margin expanding to 9.6% from 9.2% in the prior year period. Basic earnings per share increased 4.5% to €7.62.

The France reporting unit, contributing 44% of Group total, posted revenue of €1,315.6 million with organic growth of 7.1%. The United Kingdom unit generated €454.1 million in revenue, up 2.5% organically, driven by next-generation business process services. The Europe reporting unit saw an organic contraction of 2.0% primarily due to the conclusion of the SFT programme, which contributed only €37.0 million in revenue versus €85.8 million in H1 2025. Excluding SFT, the Europe unit grew organically by 3.0%.

What the Numbers Show

The divergence between reported organic growth (3.0%) and underlying organic growth (4.9%) highlights the significant tailwind provided by excluding the winding-down SFT programme. While the SFT conclusion created a 1.8-point dilutive impact on overall growth, it also improved margins in the Europe segment through provision reversals. Furthermore, the acceleration from 4.4% underlying growth in Q1 to 5.3% in Q2 suggests improving operational efficiency and demand strength in key verticals like Aeronautics (12% growth) and Defence, Security & Space (10% growth), offsetting moderate contractions in parts of Northern Europe.

Free cash flow remained negative at -€143.6 million, consistent with historical seasonal patterns in the first half of the year and including €29 million in non-recurring outflows related to tax and restructuring. Net financial debt stood at €618.7 million at June 30, 2026, equating to 1.1x pro forma 12-month rolling EBITDA, well below the 3x covenant maximum. On June 25, 2026, the Group entered into a €300 million Schuldschein loan agreement to refinance maturing Euro PP bonds, extending its debt maturity profile at a weighted cost of less than 4%.

Sopra Steria confirmed other 2026 targets, including an operating margin on business activity of at least 9.5% and free cash flow of around 5% of revenue. The Group’s headcount rose to 51,929 employees, up from 50,304 in June 2025, while the workforce attrition rate decreased to 14.3% from 16.1%.

Sopra Steria, a major European technology player listed on Euronext Paris, has completed a €40 million share buyback programme. The company purchased 271,471 shares, representing 1.4% of shares outstanding, between May 27 and July 29, 2026. This move reduces the circulating capital base while ensuring the group’s management holding company remains compliant with voting right thresholds.

The repurchase was executed at an average price of €147.35 per share. The total amount spent on the programme was €40 million. All acquired shares are intended to be retired from circulation, which typically supports earnings per share metrics by reducing the denominator in the calculation.

To maintain regulatory compliance regarding voting power, Sopra GMT, Sopra Steria Group’s management holding company, will ensure it does not exceed the threshold of 30% of the voting rights following the retirement of the repurchased shares. Prior to the retirement process, Sopra GMT will reduce the number of voting rights it holds by converting shares to bearer shares.

Buyback Programme Details

Sopra Steria operates in nearly 30 countries with 51,000 employees, providing consulting, digital services, and solutions for digital transformation. In 2025, the Group generated revenues of €5.6 billion. The company is committed to combining sector knowledge with innovative technologies to help clients build competitive advantages.

What the Numbers Show

The retirement of 1.4% of outstanding shares represents a meaningful reduction in equity count without dilution. By converting existing holdings to bearer shares before retiring the bought-back stock, Sopra GMT demonstrates a structured approach to maintaining control below the 30% voting rights ceiling. This mechanism allows the company to return capital to shareholders through share cancellation while preserving the governance structure required by its holding entity.