Sage updates its FY26 outlook, shares steady on the LSE

By Anna Wagner, Analysts & Consensus desk. Reviewed prior to publication on 2026-06-25, 17:18.

Sage (GB00B8C37574) remains in focus on the London Stock Exchange after updating its guidance alongside half-year figures for the six months to 31 March 2026. The software group now expects organic total revenue growth for FY26 to exceed 9 percent, according to the company’s May 21 trading update. Sage H1 2026 results release

What the latest results show

In the first half of FY26, Sage reported underlying total revenue of £1,363 million, up 11 percent year on year, with underlying operating profit up 15 percent to £326 million. Sage H1 2026 results release This lifted the underlying operating margin to 23.9 percent, reflecting operating leverage from higher software and services scale.

Annualised recurring revenue, a key metric for subscription software providers such as Sage and sector peer Intuit, increased by 11 percent to £2,727 million in the half year. Sage H1 2026 results release The company highlighted a renewal rate by value of 102 percent, signalling that existing customers are not only staying but also expanding their usage of Sage’s cloud solutions.

How analysts view the Sage stock

On the consensus side, data from MarketBeat shows a mixed view on Sage, with a blend of Buy, Hold and Sell ratings and an average rating in the Hold range. MarketBeat overview of Sage ratings The average price target compiled there implies limited upside from recent trading levels around 8 pounds per share in London.

Hargreaves Lansdown quotes a market capitalization of approximately £7.2 billion for Sage and a trailing price-earnings ratio of around 18.7 based on recent data. Hargreaves Lansdown share data for Sage The dividend yield stands at about 2.75 percent, with the latest interim dividend of 14.4 pence per share having gone ex-dividend on 8 January 2026 and paid on 10 February 2026. Hargreaves Lansdown dividend information

How Sage earns its money

Sage generates most of its revenue from subscription-based accounting and payroll software for small and mid-sized businesses, notably its Sage Business Cloud portfolio. The group also reports revenue from related services, including implementation, training and support contracts attached to these cloud and on-premise solutions.

Where the Sage shares trade today

The Sage shares (GB00B8C37574) trade on the London Stock Exchange under the ticker SGE, recently quoted around 808 pence, with the latest closing data from 2026-06-24 at 12:39 local time indicating a market capitalization close to £7.2 billion.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, investment recommendation or an offer or solicitation to buy or sell any financial instrument. Investors should conduct their own research or consult a qualified financial adviser before making investment decisions.