France's Sopra Steria raises 2026 growth target again as defence, cybersecurity lift Q3 sales

Oct 29 (Reuters) - IT consulting firm Sopra Steria on Thursday lifted its annual organic revenue growth target to 2.5%-3.0% from 2.0%-2.5% after quarterly sales rose 7.9% to €1.42 billion ($1.59 billion), driven by its defence, aerospace, and cybersecurity segments. 

This marks the company's second upgrade this year, highlighting how demand from defence and public sector clients, and for cybersecurity are carrying Sopra Steria through a tough economic backdrop.

Here are some details:

• Organic growth accelerated to 4.3% in the quarter from 3.0% in the first half, or 6.4% excluding the end of its SFT programme for Germany’s Sparda banks 

• Defence, security and space revenue rose 13%, as did aeronautics, while revenue from cybersecurity jumped 18%

• In France, its biggest market, organic growth rose 6.1%, led by the public sector, which makes up about 15% of French revenue and was boosted by a large digital transformation project

• Sopra Steria confirmed its targets for operating margin on business activity of at least 9.5% and free cash flow of around 5% of revenue

• “Our clients need to improve their performance while expanding their control over their critical technologies,” Chief Executive Rajesh Krishnamurthy said, pointing to the group’s European base

($1 = 0.8959 euros)

(Reporting by Leo Marchandon in Gdansk; Editing by Sonia Cheema)