Sage Group (AO) | Buy | Q2 review: momentum is staying intact

研报英文原文证据摘录

Sage Group (AO) | Buy | Q2 review: momentum is staying intact

News comment

Release date: 21 May 2026

Florian Treisch

Equity Research Analyst

Buy +49 697 569 6132Sage Group ftreisch@keplercheuvreux.com

United Kingdom | IT services & software Beta Profile: MCap: GBP8.3bn

Target Price: 1000p Bloomberg: SGE LN Reuters: SGE.L

Current Price: 897.00p Free float 100%

Up/downside: 11.5% Avg. daily volume (GBPm) 5,381.8

YTD abs performance -17.2% Market data: 20 May 2026

52-week high/low (GBP) 1283.00/783.60

Q2 review: momentum is staying intact

Key points:

Q2 organic revenue growth momentum is further accelerating, beating expectations, highlighting solid underlying trends. The

regional growth trends were broadly unchanged compared to FY-25, with the US continuing to lead.

Sage’s FY-26 guidance was slightly altered to “above 9%" organic revenue growth, which might trigger some positive earnings

revision, with consensus staying at 9.8% YOY growth.

We like to see that the retention rate has slightly improved, supporting bullish arguments of near-term tailwinds from in-house AI

adoption at Sage, and a healthy 11% organic ARR growth in H1, indicating continued momentum ahead of us. We expect this to

be the key discussion point at today’s management call (at 8:30am UK time).

The shares should see some support today, given the strong focus of the market on organic revenue growth in a volatile AI world.

We reiterate our Buy rating as current trading multiples look to excessively factor in a lasting AI impact.

Q2 review: organic revenue growth accelerating to 10.3%

We rate Sage's Q2 results positively as organic revenue growth landed above consensus expectations (at 9.9%) and kept good

momentum built in recent quarters - AI innovations are supporting growth at the moment.