Sopra Steria's Rebound: AI, Space & Security Fuel Q1 2026 Growth

PARIS, France – April 29, 2026 – European technology major Sopra Steria has confirmed a significant business rebound, posting strong first-quarter results for 2026 that underscore a successful strategic pivot towards high-growth sectors. The Paris-based firm announced revenue of €1,463.2 million, a 3.4% increase from the previous year, signaling an accelerated recovery and solidifying its position as a key player in Europe's digital transformation, particularly in artificial intelligence, defense, and space.

The results mark a decisive turnaround from a challenging 2025, which saw negative growth in its first quarter. The momentum, which began with a modest return to growth in late 2025, has now gathered significant pace, driven by a sharp uptick in its consulting business and double-digit expansion in critical industries.

A Strategically Engineered Comeback

Sopra Steria reported organic revenue growth of 3.2% for the quarter. However, the company highlighted that its underlying organic growth was a more robust 4.4%. This figure excludes the scheduled conclusion of the large-scale SFT programme, a non-recurring event that had a 1.2-point negative impact on the headline number. This underlying strength points to the health of the company's core operations and its successful navigation of a complex market.

This performance is particularly notable when benchmarked against its European peers. While rival Atos reported a challenging quarter with an organic decline of around 11%, Sopra Steria’s underlying growth of 4.4% is competitive with market leader Capgemini, which posted organic growth of approximately 4.5%. This suggests the company is not just recovering but actively gaining ground.

Rajesh Krishnamurthy, Chief Executive Officer of Sopra Steria Group, commented on the solid start to the year. “Momentum picked up in most of our geographies, driven in particular by the confirmed rebound in the Consulting business and the acceleration in the Aeronautics and Defence, Security & Space sectors,” he stated in the press release. “These results confirmed the relevance of our positioning in Europe to help our clients navigate their transformations, in particular with regard to artificial intelligence and issues related to systems and data sovereignty.”

Fortifying Europe's Digital Sovereignty

Beyond the headline numbers, the Q1 results reveal a company strategically aligning itself with Europe’s most pressing geopolitical and technological imperatives. Amidst what Krishnamurthy termed an “uncertain geopolitical environment,” Sopra Steria is doubling down on sectors crucial for European autonomy.

The most striking growth came from Aeronautics (+15%) and Defence, Security & Space (+7%). This aligns perfectly with a continental push for greater digital sovereignty and increased defense capabilities, spurred by ongoing geopolitical tensions and the rising threat of hybrid attacks on critical infrastructure. European spending on cybersecurity alone is projected to grow at a CAGR of over 10% through 2031, driven by regulatory mandates and the need to secure complex digital systems.

Underscoring this strategic direction is the impending acquisition of Starion and Nexova. The deal, expected to close in the coming days, will create a European powerhouse in secure digital services for the space and cybersecurity sectors, with a combined revenue of over €200 million and a specialized workforce of 1,600. Starion is a specialist in systems engineering for space missions, while Nexova focuses on cybersecurity for critical infrastructure. This acquisition positions Sopra Steria to capture significant opportunities in the European space market, estimated at €20 billion, and the rapidly expanding cybersecurity market.

Geographic Strengths and Broad-Based Growth

The recovery is not confined to a single market but is evident across the Group's key geographies. France, which accounts for 44% of total revenue, was a standout performer, delivering a powerful 7.2% organic growth. This surge was broad-based, with positive momentum across the transport, aeronautics, public sector, and financial services verticals.

The United Kingdom, representing 15% of the Group, also posted a solid 4.2% organic growth. This performance was driven by the continued success of the NHS SBS platform, next-generation business process services, and strong demand from the private financial services sector.

The Europe reporting unit, which accounts for 35% of revenue, showed a more nuanced but ultimately positive picture. While the headline figure showed a 1.6% organic contraction, this was entirely due to the conclusion of the SFT programme. Excluding this impact, the region returned to 1.6% organic growth, a significant improvement from the contractions seen throughout 2025. Buoyant growth in Italy, Switzerland, Scandinavia, and Spain offset moderate, but lessening, contractions in Germany, Belgium, and the Netherlands, where the trend is expected to continue improving.

The Human Engine of Transformation

Underpinning this technological and financial momentum is a robust human capital strategy. The Group’s total headcount grew to 51,163 people by the end of March 2026, an increase of over 1,000 employees from the previous year. This growth is crucial for delivering the complex, large-scale digital transformation projects that are central to the company's offerings.

A key element of this strategy is the expansion of its international service centers, which saw their workforce grow by an impressive 12.7%. These centers now account for 16.8% of the total workforce, up from 15.6% a year earlier, indicating a strategic shift in talent deployment to optimize service delivery and competitiveness. Furthermore, the staff attrition rate declined to 15.4% from 16.4% a year prior, a positive indicator of employee satisfaction and organizational stability in a highly competitive talent market.

With a confident outlook, Sopra Steria has confirmed all its full-year targets for 2026, including organic revenue growth of between 1.0% and 2.0% (which accounts for the SFT impact) and an operating margin of at least 9.5%. The company also signaled strong confidence to investors by announcing a new €40 million share buyback programme, reinforcing its commitment to shareholder value and its belief in the continued upward trajectory of the business.