Sage Group Maintains Fiscal 2025 Revenue Forecast Amid Strong Q1 Growth

10% Revenue Growth in Q1

Sage Group (SGE.L) has posted a 10% growth in underlying revenue for the first quarter of fiscal 2025. This performance was largely driven by increased demand, particularly in North America, which remains the company’s fastest-growing region.

Cloud and AI Investments Paying Off

The software company has made significant investments in cloud services in recent years, positioning itself to benefit from surging demand for artificial intelligence products. Sage is focusing on generative AI to enhance its offerings and support small business owners.

Generative AI: A Key Growth Driver

In December, Sage launched its “Sage Copilot” assistant, powered by generative AI. This tool helps businesses manage tasks more efficiently and even automates certain processes, aligning with Sage’s strategy to tap into the growing AI trend.

Stock Performance and Analyst Confidence

Despite global investor concerns, partly due to competition from DeepSeek’s free AI assistant, Sage’s shares have remained strong. The FTSE 100 company’s stock has risen 5% so far this year, and analysts remain optimistic about Sage’s earnings growth and AI initiatives.

Fiscal Year Outlook

Sage has maintained its revenue forecast for the year, projecting organic growth of 9% or more, which is in line with analysts’ expectations. In the first quarter, the company reported underlying total revenue of £612 million ($760.84 million), with North America posting an 11% revenue increase.

“Sage Group Maintains Fiscal 2025 Revenue Forecast Amid Strong Q1 Growth”