Sage Group PLC (LSE:SGE) shares topped the FTSE 100 leaderboard on Tuesday morning after the financial software maker reported a 10% increase in revenue for the first quarter of its financial year.
Revenues came in at £674 million for the three months to 31 December 2025, supported by growth that was said to be broad-based across regional and product portfolios. Organic revenue also rose 10%.
This represented an acceleration from the 9% organic growth and 8% in statutory revenue seen in the past full year.
Revenue from Sage Business Cloud increased 15% to £574 million, with cloud native revenue rising 24% to £253 million.
In North America, revenue grew 13% to £304 million; the UK, Ireland and Africa region saw a 10% increase to £194 million; and European revenue grew 7% to £176 million.
Recurring revenue was up 10% to £655 million, and software subscription revenue rose 12% to £568 million. Subscription penetration increased to 84% from 83% a year earlier.
Jacqui Cartin, chief financial officer, called it a "strong start" that was "supported by the continued execution of our growth strategy. We are investing in innovation across our AI-powered platform, helping small and mid-sized businesses solve their day-to-day challenges and work more productively."
Foreign exchange movements were broadly neutral at the group level, with sterling strengthening against the US dollar and weakening against the euro.