Sopra Steria Rebounds with AI Push, Eyes European Digital Sovereignty

PARIS – February 26, 2026 – European IT services giant Sopra Steria Group has demonstrated remarkable resilience in a challenging economic climate, reporting an 18.3% increase in net profit and a strategic return to organic growth in the final quarter of 2025. The Paris-based firm announced its full-year results today, revealing a net profit attributable to the Group of €296.8 million and a 22.2% rise in basic earnings per share to €15.23, signaling a robust turnaround and a clear strategic path forward.

Despite a full-year revenue contraction of 2.2% to €5.6 billion, the company’s pivot to high-growth areas and disciplined financial management enabled a strong finish to the year, with Q4 organic revenue growing by 1.8%. This performance underscores the success of its focused strategy on key sectors and emerging technologies.

Rajesh Krishnamurthy, Chief Executive Officer of Sopra Steria Group, who joined the company with a belief in its solid fundamentals, commented on the results. “Financial year 2025 unfolded in a challenging environment. Against this backdrop, Sopra Steria’s return to organic growth in the fourth quarter, 18% growth in net profit attributable to the Group and robust cash flow reflect the resilience of our business model and our teams’ high-quality work,” he stated. “We are approaching 2026 with a clear path: securing a lasting return to positive organic growth, improving our operating margin and maintaining a strong cash flow, in line with our medium-term targets.”

The Engine of Recovery: AI and Strategic Sectors

The fourth-quarter recovery was not accidental but the result of a concerted push into strategic verticals and a significant ramp-up in artificial intelligence. The company saw a clear improvement in the Aeronautics sector, strong momentum in the Public Sector, and a rebound in its Defence, Space & Security and Transport verticals. This positive trend was particularly evident in France, where the public sector was especially buoyant at the end of the year.

At the heart of this resurgence is the company’s aggressive adoption of generative and agentic AI. Sopra Steria reported a sharp increase in AI-related business, noting that the vast majority of its key accounts launched AI projects with the firm in 2025. In France alone, the number of clients embarking on AI initiatives surged by 44%. To meet this demand, the company expanded its specialized “AI for Business” practice, increasing its consultant headcount by 50% over the year.

This strategic focus was further solidified by a key partnership announced in February 2025 with Mistral AI, a prominent generative AI firm. The collaboration is designed to deliver sovereign, industrialized AI solutions for major European enterprises and public bodies, deployable on secure, sovereign cloud infrastructures. This move positions Sopra Steria not just as a service provider but as a critical enabler of AI transformation, with over 4,000 AI experts guiding clients from data management to deployment.

Building a European Champion Through Acquisition

Sopra Steria’s strategy extends beyond organic growth, leveraging targeted acquisitions to fortify its market position and build a credible European alternative to global tech operators. The 2025 financial year saw two key acquisitions integrated into the Group.

The purchase of Aurexia, a management consultancy, positions Sopra Steria as a leading advisor in France’s financial services sector, adding over 400 specialized consultants. This move directly supports the Group’s ambition to double the size of its consulting business by 2028. Meanwhile, the acquisition of Neocase, a digital HR solutions provider, enhances its Sopra HR Software unit, enabling an end-to-end service offering focused on optimizing the employee experience.

Perhaps most significant is the company's planned acquisition of Starion and Nexova, announced in December 2025. This move is set to create a leading European operator in secure, sovereign digital services for the space and cybersecurity sectors. With combined revenues of nearly €100 million and 700 employees, Starion and Nexova bring deep expertise in critical systems engineering for clients like the European Space Agency. The acquisition directly targets the rapidly expanding European space market, estimated at €20 billion, and the cybersecurity market, valued at over €10 billion, both of which are seeing accelerated growth due to geopolitical shifts and a heightened focus on digital sovereignty.

A Tale of Two Turnarounds: Regional Performance

A closer look at the regional performance reveals a story of recovery and resilience. In France, which accounts for 43% of Group revenue, a 2.5% decline over the first nine months was reversed by 1.6% organic growth in Q4, driven by the aforementioned strength in public sector and aeronautics.

Similarly, the United Kingdom, after a difficult nine months showing an 8.3% revenue decline, surged with 8.8% growth in the final quarter. This was largely credited to the strong performance of its major government joint ventures, NHS SBS and SSCL, and a less challenging comparative baseline. However, the UK's operating margin on business activity did see a contraction from 12.1% in 2024 to 9.6% in 2025, indicating some ongoing regional pressures.

The overall results were tempered by the scheduled conclusion of the SFT program for Sparda banks in Germany, which had a 0.1-point negative impact on 2025 organic growth. This is expected to create a more significant, non-recurring headwind of approximately two percentage points on organic growth in 2026.

Delivering Value Beyond the Bottom Line

Sopra Steria’s strong financial discipline is evident in its balance sheet. The company generated a robust free cash flow of €340.9 million and dramatically reduced its net financial debt by 35.4% to €246.7 million. This financial health underpins its ability to invest in growth and return value to shareholders, as demonstrated by a proposed dividend increase to €5.30 per share, up from €4.65 the previous year.

Beyond financial metrics, the company continues to solidify its reputation as a leader in corporate sustainability. In January 2026, for the ninth consecutive year, Sopra Steria was named to the CDP 'A List' for its climate action leadership—a distinction achieved by only 4% of companies assessed. This recognizes its transparent and proactive approach to combating climate change.

The firm is making tangible progress on its ambitious, science-based targets, which are aligned with the 1.5°C global warming pathway. As of the end of 2025, it had already achieved a 64.6% reduction in its direct Scope 1 & 2 emissions and a 33.2% reduction in its much larger Scope 3 value chain emissions against a 2019 baseline, putting it well on track to meet its 2030 goals. This commitment to environmental, social, and governance (ESG) principles is framed as a core component of its strategy to create long-term, sustainable value for all stakeholders.

Looking ahead, Sopra Steria has set a target for organic revenue growth of 1.0% to 2.0% in 2026, which would be between 3% and 4% when excluding the impact of the SFT program's conclusion. The company also aims for an operating margin of at least 9.5%, signaling confidence in its continued path of profitable and strategic growth.