OVHcloud, a French cloud services provider, announced financial targets for 2026 and indicated that it intends to benefit from digital transformation despite an uncertain macroeconomic environment and a momentarily sluggish cloud market.
The French cloud services provider OVHcloud (OVH.PA), which opened a new tab on Wednesday, set financial targets for 2026 and stated that it expects to benefit from digital transformation despite an uncertain macroeconomic environment and a temporarily slowing cloud market.
The group stated in a statement released ahead of its first Investor Day event later that day that it expects to generate weighted average annual organic revenue growth of 11% to 13% and an adjusted core profit (EBITDA) margin of close to 39% in 2026.
The group presented its strategic plan and stated that it will “continue to rigorously manage its various costs,” while margins will benefit from a gradual operating leverage effect over the period. Some cloud companies have been struggling with slow sales as customers delay investment and look to cut costs.
“In spite of the current circumstances, OVHcloud has experienced strong revenue growth in comparison to its industry peers,” the company stated, adding that it thinks structural growth levers will hold true in the medium and long run.
In order to optimize cash generation, the group intends to decrease one-time investments in IPV4, hyper-resilience, and supply chain tension-related inventories. OVHcloud projects positive free cash flow for 2026.
“The digital sector is undergoing immense transformations, particularly in the areas of artificial intelligence and quantum mechanics,” said Octave Klaba, the company’s founder and chairman. OVHcloud also maintained its goals and opened new tabs for 2024 and 2025.
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