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French cloud services provider OVHcloud (OVH.PA) has charted an ambitious course for the future, uncovering its financial targets for 2026 during its inaugural Investor Day event.
A Prosperous Future for OVHcloud
The company anticipates a prosperous trajectory with a weighted average annual organic revenue growth of 11% to 13%, aiming for an adjusted core profit (EBITDA) margin of 39% by 2026. This announcement has pushed the company’s shares, witnessing a 7% surge, the Reuters reported.
Presenting its strategic plan, OVHcloud foresees substantial growth in its public cloud infrastructure between 2024 and 2026, with a slightly tempered growth outlook for its private cloud segment compared to preceding years. The company, optimistic about the future, also forecasts a positive free cash-flow in 2026.
Despite a temporary slowdown in the cloud market’s growth due to delayed investments and cost-cutting measures by customers, OVHcloud has demonstrated resilient revenue growth, outpacing its peers. The company attributes this success to its strategic positioning and plans to capitalize on it further.
OVHcloud’s strategic plan includes a commitment to ramping up and expanding its sovereignty and public cloud services. The company aims to meet the growing demand from the public and healthcare sectors, leveraging geopolitical tensions that underscore the need for sovereignty data services. Founder Octave Klaba pointed out that such tensions, coupled with technological advancements like artificial intelligence and quantum mechanics, are significant tailwinds for the group.
To ensure financial resilience, OVHcloud pledges to maintain strict cost controls and reduce one-off investments, including those in hyper-resilience, IPV4, or inventories linked to supply chain tensions. With this comprehensive approach, OVHcloud positions itself not only to navigate current challenges but also to thrive in an evolving market landscape driven by innovation and increasing demand for cloud hosting services.