Sage reported revenue of approximately $2.79 billion for the first nine months of fiscal 2026, up 11%. Standalone Q3 revenue approached $930 million, with growth accelerating to 12%.
Organic revenue exceeded $2.66 billion, an increase of 10%. Recurring revenue rose 11% to approximately $2.66 billion, while subscription revenue increased 13% to more than $2.26 billion. Subscription penetration reached 84%.
Sage Business Cloud revenue increased 15% to approximately $2.39 billion. Cloud-native products remained the fastest-growing part of the portfolio, rising 25% to approximately $1.06 billion.
North America and Intacct lead growth
North America was Sage’s strongest region, with revenue increasing 14% to approximately $1.24 billion. Sage credited continued Intacct momentum and its vertical-market sales strategy, along with good performance from Sage 50, Sage 200, payroll and HR products.
UKIA revenue increased 10% to approximately $800 million, supported by Sage Intacct, Sage Accounting and embedded services.
Europe grew 7% to approximately $702 million. Sage cited strength in Sage X3 and Sage 200, increasing Intacct traction and compliance-driven demand for e-invoicing and cloud services.
Intacct’s international expansion remains notable. At the half year, Intacct revenue outside the United States was growing approximately 58%, compared with approximately 20% in the U.S.
Putting the 5.5% pricing contribution in context
Management said the pricing trends reported at H1 have continued, including a pricing contribution of approximately 5.5%.
That figure should not be interpreted as pricing accounting for 5.5 percentage points of Sage’s 10% organic revenue growth. Sage discussed pricing as one component of annualized recurring revenue generated from existing customers.
Existing-customer ARR includes renewals, migrations, price increases, cross-selling and upselling, net of churn. At H1, Sage’s renewal rate by value was 102%, reflecting the combined effect of those factors.
Sage did not provide an updated breakdown at Q3. Management said pricing, cross-selling and upselling continued to support renewal performance while churn remained low and stable.
New-customer acquisition also remains an important part of the story. At H1, new customers had added approximately $266 million of organic ARR over the preceding 12 months. Sage described overall growth as balanced between new and existing customers.
AI is beginning to support pricing where Sage Copilot and other capabilities are bundled into subscription plans. However, Sage continues to characterize direct AI monetization as early-stage, with its immediate focus on adoption and demonstrating customer value.
The takeaway for partners is that pricing remains a meaningful contributor to Sage’s recurring-revenue growth, but it is only one part of the equation. Intacct, cloud-native products, new customers, cross-selling, upselling and strong retention are all contributing to the company’s momentum.
Sage reiterated its FY26 guidance for organic revenue growth above 9%.
British-pound amounts were converted at approximately £1 to $1.3291 and rounded.
Compliance requirements, including Making Tax Digital in the United Kingdom and expanded e-invoicing mandates across Europe, are also helping accelerate cloud adoption.
AI moves further into Sage’s installed base
Sage said its AI tools are now available to more than 600,000 customers, an increase of more than 20% since its May half-year report. More than half of new Sage Intacct customers are selecting the company’s AI-powered accounts payable module.
Current AI use cases include anomaly detection, accounts payable automation, e-invoicing and agentic workflows. Sage’s strategy combines proprietary AI models with access to third-party frontier models, embedding the resulting capabilities within accounting and business-management workflows.
Pricing contributed approximately 5.5 percentage points to Sage’s revenue growth. This does not mean every customer received a 5.5% price increase. It represents the overall revenue effect of pricing changes across products, regions and customer groups.
With organic revenue growing approximately 10%, pricing appears to account for slightly more than half of that growth. The remainder came from new customers, cross-selling, upgrades, increased usage and other volume-related activity. Sage reported that churn remained stable despite the pricing contribution.
Intacct expansion continues outside the United States
Sage continues to expand Intacct internationally, reporting strong progress in France with Germany following. At the half-year point, Sage Intacct revenue outside the United States had grown approximately 58%, compared with approximately 20% growth in the U.S.
The company also reported that new-customer acquisition is accelerating despite an intensely competitive market. Sage said demand has remained largely unaffected by geopolitical uncertainty, while inflationary pressure is encouraging businesses to invest in productivity and automation.
Sage reiterated its full-year FY26 guidance for organic revenue growth above 9%. Operating margins are expected to improve, although the company is targeting the lower end of its planned 50- to 100-basis-point expansion range as it continues investing in growth.
Fourth-quarter comparisons will become more difficult because of Sage’s strong performance in Q4 FY25. However, sequential annualized recurring revenue growth during Q3 was slightly above 2% and ahead of the comparable prior-year period.
Sage’s next full financial update is scheduled for November.
British-pound amounts were converted at approximately £1 to $1.3291 and rounded.
