Sopra Steria sees 2026 adj. oper margin at least 9.5%

Sopra Steria sees 2026 adj. oper margin at least 9.5%

Sopra Steria Group Eyes 9.5% Adjusted Operating Margin in 2026 Amid Strategic Focus on Growth and Efficiency

Sopra Steria Group (Paris:SOP) has outlined a target of maintaining an adjusted operating margin of at least 9.5% in 2026, aligning with its 2025 performance and medium-term strategic priorities. The company's 2025 results, released on February 26, 2026, showed an operating margin on business activity of 9.5%, matching the upper end of its guided range of 9.3% to 9.8%. This stability reflects disciplined cost management and a focus on high-margin sectors such as defense, public sector, and financial services, which collectively account for 65% of its revenue.

The return to organic revenue growth in Q4 2025 (+1.8%) and a 18.3% year-over-year increase in net profit attributable to the Group underscore the company's resilience amid macroeconomic challenges. CEO Rajesh Krishnamurthy emphasized that investments in digital transformation, including generative AI and consulting services, are critical to enhancing profitability. These initiatives align with the Group's broader strategy to expand in strategic markets and strengthen its European positioning.

Analysts have noted that Sopra Steria's focus on innovation and operational efficiency positions it to meet its 2026 margin target. The company's free cash flow of €340.9 million in 2025—equating to 6.0% of revenue—provides financial flexibility for targeted investments and shareholder returns, with a proposed 2025 dividend of €5.30 per share. Institutional ownership at ~70% suggests confidence in the Group's capital allocation strategy.

While the 2025 full-year revenue declined 2.2% to €5,648.0 million, the CEO highlighted progress in stabilizing growth trajectories, particularly in consulting and AI-driven services. With a solid balance sheet and a focus on disciplined expansion, Sopra Steria aims to sustain its 9.5% margin threshold in 2026 while prioritizing long-term value creation.

According to the company's 2025 results: Sopra Steria Group 2025 Results, February 26, 2026.
As reported on GrowthInvesting.net: Sopra Steria 2026 Forecast.