Accounting software leader Sage has announced a significant surge in both revenue and operating profit, crediting its aggressive push into artificial intelligence as a key growth driver.
Financial Performance and Strategic Expansion
The FTSE100 company, which has a major engineering hub in North Tyneside, reported an 8% rise in annual revenue to £2.5bn for the year ending September 2025. More impressively, its operating profit climbed by 17% to £530m.
Demonstrating confidence in its financial health, the firm's board also sanctioned a substantial £300m share buyback scheme, pointing to the company's robust cash generation.
AI Innovation and Product Development
Central to Sage's success has been the rapid development and scaling of its generative AI assistant, Copilot. Engineers at the North Tyneside base have been instrumental in building this technology, which is now integrated across Sage's product suite to help businesses automate manual tasks and accelerate payment cycles.
The company is now advancing this technology further by creating specialised AI agents designed to automate complex processes in areas like compliance, accounts payable, reconciliation, and tax. Key launches include the Income Tax Agent for UK accountants and the Finance Intelligence Agent for Sage Intacct customers in both the UK and US.
Beyond customer-facing products, Sage is also leveraging AI internally to enhance its own engineering and customer support operations.
Regional Growth and Leadership Vision
Geographically, growth was led by a 12% underlying revenue increase in the US, where the company generated £1.1bn, with strong performance noted in construction, real estate, and financial services sectors.
In the UK, Ireland, and Africa region, underlying total revenue grew by 9% to £729m, while Europe saw a 7% rise to £646m. Notably, the Iberia region experienced a 10% surge to £167m, driven by product renewals and new customer acquisitions.
Chief Executive Steve Hare expressed strong optimism about the company's trajectory. He stated that the results reflect Sage's strategic execution and resilient business model. 'We are excited by the pace of technological change,' Mr. Hare said. 'AI is opening up new possibilities for businesses and creating a significant opportunity for Sage, enabling us to enhance and accelerate the benefits our software provides.'
With its global platform and focus on innovation, Sage believes it is uniquely positioned to support small and mid-sized businesses in adopting AI, driving confidence for sustained future growth.
