Sopra Steria Sales Rebound Driven by Defence and Consulting Demand, Shares Surge
Paris — Sopra Steria reported a return to growth in the first quarter, with revenue rising 3.2% organically to €1.5 billion, marking its second consecutive quarter of expansion and sending its shares up more than 11%.
The performance signals a turnaround for the French IT services group as it strengthens its position in defence, public sector, and consulting markets across Europe.
Growth Led by Core Sectors
Sopra Steria’s rebound was driven by strong demand in key verticals:
- Aeronautics: Revenue surged 15%
- Defence, Security, and Space: Sales grew 7% globally
- France (largest market): Revenue increased 7.2% to €650.1 million
The company highlighted defence, aeronautics, and public sector activities as major contributors to the improved performance.
“These results confirm the relevance of our positioning in Europe, particularly in areas such as AI and data sovereignty,” said Rajesh Krishnamurthy, who took over as CEO earlier this year.
Recovery After Previous Decline
The first-quarter growth represents a significant improvement compared with the 4.9% decline recorded in the same period last year. Excluding the impact of a previously announced digital transformation contract completion with Germany’s Sparda banks, organic growth would have reached 4.4%.
Competitive Positioning in Europe
Sopra Steria continues to compete with global IT services firms such as Capgemini and Accenture, with a strategy focused on European clients and sectors where data sovereignty and regulatory compliance are critical.
The company is also aligning its offerings with growing demand for artificial intelligence and digital transformation solutions in regulated industries.
Expansion Through Hiring and Acquisitions
The group’s workforce increased to 51,163 employees as of March, up from 50,106 a year earlier, supported by recent acquisitions including financial consultancy Aurexia and HR software provider Neocase.
Outlook and Capital Strategy
Sopra Steria reaffirmed its 2026 organic growth target of 1% to 2% and announced a €40 million share buyback programme, signaling confidence in its financial position and long-term strategy.
Strengthening Position in Strategic Sectors
The company’s renewed growth underscores the resilience of demand in defence and public sector IT services, particularly as European governments increase investment in security, digital infrastructure, and sovereign technology capabilities.
With improved momentum and a sharpened strategic focus, Sopra Steria is positioning itself for sustained growth in a competitive and evolving IT services market.
