SAGE GROUP (+) : Company contact: key takeaways

研报英文原文证据摘录

SAGE GROUP (+) : Company contact: key takeaways

EQUITIES

SOFTWARE

SAGE GROUP OUTPERFORMPRICE* 802p  TARGET PRICE 1,200p (UPSIDE 50%)

FLASH NOTE

Company contact: key takeaways

23 JUNE 2026 Securities Research Report Production time: 05:48* (London time)

Research Analyst & Publishing Entities

Ben Castillo-Bernaus BNP Paribas London Branch (+44) 203 430 8527 ben.castillo-bernaus@uk.bnpparibas.com

What happened?

We met with Sage CFO Jacqui Cartin and HoIR James Sandford ahead of the FQ3’26 quiet period. Sage will report its

FQ3’26 trading update on Wednesday 29-July pre-market.

BNPP View:

Overall: a positive tone consistent with that of recent quarters as the business continues to deliver improving top and

bottom line performance. Sage continues to be the ‘AI vs. Software paradox’ in our view: delivering upgrades to

both top line growth and earnings estimates over the past 6-9months, driven by successfully leveraging AI across its

portfolio, yet has seen its valuation multiple compress by >30% now to 16x P/E (12m fwd Bloomberg Consensus), see

charts within.

Key topics discussed:

– Current environment: remains broadly supportive with SMB customers described as ‘getting on with it’,

regardless of the Middle East conflict or geopolitics. We sensed a consistent tone here with that at H1'26

results in May.

– 2026: strong H1 performance accelerated revenue growth once again in Q2 to 10.1%, underpinning confidence

in raising guidance to ‘above 9%’ for FY26. Co. acknowledged the comparator effect with tougher comparators

to come in H2 and confirmed this is 'reflected within the guidance', likely limiting the scope for further

accelerating revenue in FQ3 / FQ4'26, in our view, consistent with market expectations.