Figurines with computers and smartphones are seen in front of Sopra Steria logo in this illustration taken, February 19, 2024. REUTERS/Dado Ruvic/Illustration

IT firm Sopra Steria's sales rise on defence and consulting spending in Europe

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April 29 : French IT group Sopra Steria on Wednesday reported a 3.2 per cent organic rise in its first-quarter revenue to 1.5 billion euros ($1.8 billion), driven by business improvements across its core business.

The company said the completion of a programme for Sparda banks, planned since 2023, negatively impacted organic growth, which would have risen by 4.4 per cent excluding this factor.

Sopra Steria, which competes with Capgemini and Accenture, is turning a new leaf under new CEO Rajesh Krishnamurthy, betting on its strengths in public and defence sector solutions and its focus on European clients.

"These results confirmed the relevance of our positioning in Europe, ... in particular with regard to artificial intelligence and issues related to systems and data sovereignty," Krishnamurthy said in a statement. 

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The rebound after last year's weaker performance was driven by strength in its consulting business and a notable acceleration in Aeronautics and Defence, Sopra Steria said. 

It also confirmed the 2026 target for organic revenue growth of between 1 per cent and 2 per cent and announced a new 40-million-euro share buyback programme.

($1 = 0.8544 euros)

Source: Reuters

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