The Sage Group (LSE:SGE), the provider of accounting, HR and payroll software firm, said total revenue rose 11% to £2,062m in the nine months ended 30 June.
Third-quarter revenue growth accelerated to 12%, reaching £699m, up from £627m in the same quarter last year.
North America led regional performance, with revenue up 14% to £932m on strength in Sage Intacct, Sage 50 and Sage 200.
UKIA revenue grew 10% to £602m on rapid scaling of Sage Intacct, while Europe grew 7% to £528m.
Sage Business Cloud revenue increased 15% to £1,762m, with cloud native revenue up 25% to £794m.
Recurring revenue rose 11% to £2,002m, and software subscription revenue grew 13% to £1,743m, lifting subscription penetration to 84% from 83% a year earlier.
On an organic basis, excluding acquisitions, total revenue grew 10% to £2,057m.
"Sage has delivered nine months of accelerating revenue growth, with momentum strengthening further in the third quarter", said Jacqui Cartin, chief financial officer, citing focused execution on AI capabilities and scaling of Sage Intacct.
Sage said it continues to expect organic total revenue growth for the full year to exceed 9%, with operating margins trending upward in FY26 and beyond.
News Intelligence what this means for the company
Sage accelerated revenue growth to 11% in the nine months to 30 June, with Q3 momentum strengthening to 12%, driven by North America (up 14%) and cloud-native products (up 25%). The company reiterated full-year organic growth guidance of above 9%, signalling confidence in sustained momentum as subscription penetration deepens to 84% and recurring revenue now represents 97% of total revenue.
Accelerating growth, rising subscription mix, and cloud-native traction reinforce Sage's shift toward higher-margin, stickier recurring revenue. The 12% Q3 growth and 25% cloud-native expansion suggest the AI and Intacct scaling strategy is gaining traction, though the full-year guidance of above 9% organic growth remains modest relative to the nine-month 10% organic run rate, implying either Q4 deceleration or conservative messaging.
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