OVHcloud, the French cloud computing company, saw a boost in its shares on Wednesday as it announced its financial targets for fiscal 2026. Despite the uncertain economic environment, the company remains confident in its future prospects due to the increasing demand for data sovereignty and its strong performance-price ratio.
Positive Growth Forecasts
OVH Groupe, as it is formally known, expects to achieve annual organic revenue growth of 11% to 13% between fiscal years 2024 and 2026. This projection demonstrates the company’s commitment to delivering consistent and sustainable growth in the long term.
Impressive Profitability
In addition to its revenue targets, OVHcloud aims to achieve an adjusted margin on earnings before interest, taxes, depreciation, and amortization (EBITDA) of approximately 39% in fiscal 2026. This demonstrates the company’s focus on maintaining a healthy level of profitability while pursuing its growth objectives.
Strong Cash Flow Position
Furthermore, OVHcloud anticipates positive free cash flow in fiscal 2026, showcasing its ability to generate sufficient cash to support its operations and investment activities. This solid cash flow position is crucial for the company’s continued expansion and innovation in the increasingly competitive cloud computing industry.
Chief Executive Michel Paulin expressed confidence in OVHcloud’s future and emphasized the attractiveness of their business model in light of the growing demand for data sovereignty. With clear goals and a resilient approach, OVHcloud is well-positioned to capitalize on market opportunities and deliver value to its stakeholders.
