London, Jan 28, 2026, 09:15 GMT — Regular session
- Sage shares up 0.2% in early London trade after a 5.1% drop on Tuesday
- Q1 revenue rose 10% to £674 million; cloud and recurring revenue also grew
- Company bought back 998,691 shares on Jan. 27, a filing showed
Shares in Sage Group (SGE.L) edged up 0.2% to 991.6 pence in early trade on Wednesday, after sliding 5.1% in the previous session. (Investing)
The accounting and payroll software maker said first-quarter total revenue rose 10% to £674 million, led by North America up 13% to £304 million, while UKIA grew 10% to £194 million and Europe rose 7% to £176 million. Sage Business Cloud revenue grew 15% to £574 million and recurring revenue rose 10% to £655 million, with subscription penetration at 84%. “Sage delivered a strong start to FY26, with Q1 organic revenue growth accelerating to 10%,” Chief Financial Officer Jacqui Cartin said, as the group reiterated full-year guidance; “organic” excludes acquisitions and is measured at constant currency.
The update is an early read on whether Sage’s cloud subscription push is still pulling through, after sharp swings in the share price this month. Europe’s technology sector led gains early on Wednesday even as broader stocks paused, with investors also eyeing the U.S. Federal Reserve decision later in the day for any signal on the path of rates. (Reuters)
Jefferies analyst Charles Brennan said organic recurring revenue growth accelerated to 10.1%, from 9.6% in the prior quarter, and called the showing “strong” against the prior quarter’s exit annualised recurring revenue (ARR) growth of 9.9%. (Investing.com UK)
Sage also disclosed it bought back 998,691 shares on Jan. 27 at a volume-weighted average price of 1,001.05 pence, with the highest price paid 1,050.5 pence. The buyback programme is due to end no later than March 19, 2026, and the shares will be cancelled, the company said. (Investegate)
But the market’s reaction has not been clean. The Q1 update leans heavily on revenue and recurring metrics, and investors still have to wait for the next results to see how spending and pricing flow through to profit.
The calendar is busy near term, too. Sage is due to hold its annual general meeting on Feb. 5 and is scheduled to pay its final dividend on Feb. 10, according to an industry diary. (London South East)
The next big catalyst is Sage’s interim results on May 21, when investors expect a fuller update on progress through fiscal 2026. (Sage)
