SAGE GROUP (+) : Never mind what we think, what are customers thinking?

Research evidence excerpt

SAGE GROUP (+) : Never mind what we think, what are customers thinking?

EQUITIES

SOFTWARE

SAGE GROUP OUTPERFORMPRICE* 877p  TARGET PRICE 1,200p (UPSIDE 37%) TARGET 9%PRICE nonEPS material09/26e nonEPS material09/27e

Never mind what we think, what are customers thinking?

We surveyed >500 users of Accounting Software globally to gain insight on customer priorities and11 MAY 2026

Securities Research Report propensity to adopt AI solutions. We unpack how this could impact Sage’s growth algorithm.

Production time: 06:08* (London time)

Research Analysts & Publishing Entities Sage to report H1’26 on Thursday 21-May (pre-market)

Ben Castillo-Bernaus Sage delivered a strong FQ1’26 running ahead of FY guidance (9% or above) with sustained ARR

BNP Paribas London Branch momentum. We continue to see 10% Organic ARR growth as the necessary catalyst for FY26, we

(+44) 203 430 8527

ben.castillo-bernaus@uk.bnpparibas.com detail the essential components to deliver this, as well as our ‘H1’26 wish list’. We forecast FY26

Group org growth of 9.5% (Cons: 9.3%) and EBIT margin expansion of +120bps Y/Y (Cons: +60bps).

Ines Mao

BNP Paribas London Branch

+44 207 595 6564 What 500+ Accounting Software customers are thinking in context of AI disruption debate

ines.mao@uk.bnpparibas.com We have surveyed >500 SMBs across N. America, UK&I, and Europe: reliability / accuracy of

Software tools is the top priority, while price takes a back seat, and the value of the Accountant /

Bookkeeping network may be an under-appreciated moat for Software incumbents. On AI adoption,

there is a strong preference towards packaged AI capabilities within existing Software solutions,

however while AI tools are largely available, intensive usage is still relatively low today. On the other