OVHcloud Sees 6% Organic Growth in Q1, Reaffirms 2026 Annual Guidance
OVHcloud, the French cloud computing leader, has started 2026 with solid results. In the first quarter of its fiscal year, the company delivered 6% organic revenue growth, driven by strong demand in its Public Cloud services. Alongside this growth, OVHcloud reaffirmed its full‑year guidance for 2026, signaling confidence in its strategy and execution as the cloud market evolves.
Q1 2026 Performance Overview
- Revenue Growth: OVHcloud reported €275.3 million in Q1 2026, up from €263.5 million in Q1 2025, a 6% like-for-like increase.
- Customer Loyalty: The net revenue retention rate was 105%, showing existing customers spent more this quarter.
- Segment Drivers: Revenue growth came from all major segments, with Public Cloud leading the way.
Revenue and Segment Analysis
- Public Cloud: €58.2 million revenue, up 15.8% like-for-like. Main growth driver due to scalable cloud product adoption.
- Private Cloud: €167.2 million, up 4%, remains the largest revenue segment, preferred by businesses needing secure environments.
- Webcloud Services: €49.8 million, up 2.3%, smaller digital services contributing steadily.
- Balanced Growth: Public Cloud growth comes from new and existing clients, while Private Cloud ensures a stable foundation for sensitive workloads.
Strategic Initiatives Behind Growth
- Infrastructure Expansion: OVHcloud is expanding 3 AZ (Availability Zone) regions in Europe, with a new region in Berlin by early 2027.
- Sovereign Cloud Focus: Emphasizes local data hosting and privacy compliance, catering to European businesses that value data control.
- AI and Productivity: OVHcloud uses AI internally to improve service quality, support, and operational efficiency.
2026 Guidance and Market Outlook
- Annual Guidance: OVHcloud reaffirmed 2026 targets, expecting to hit growth goals and positive free cash flow.
- Investor Confidence: Shows stability and focus, even amid competition from AWS, Azure, and Google Cloud.
- Industry Trends: Cloud growth in 2026 is expected from hybrid/multi-cloud adoption, AI integration, and edge computing, benefiting OVHcloud’s offerings.
Industry Context and Competitive Position
- European Niche: OVHcloud is a trusted European cloud provider, known for sovereignty, security, and transparent pricing.
- Public Cloud Share: 15.8% growth in Public Cloud shows the ability to capture new workloads, not just legacy clients.
- Service Flexibility: OVHcloud serves large enterprises and small digital players, scaling from web hosting to hybrid AI-enabled systems.
Conclusion
In Q1 of fiscal 2026, OVHcloud demonstrated that its strategy is working. 6% organic growth and reaffirmed annual guidance reflect steady execution and customer trust. Public Cloud growth stands out as a key driver, while the broader cloud portfolio remains stable and competitive. As we look ahead, the emphasis on data sovereignty, infrastructure expansion, and service quality positions OVHcloud well in a dynamic cloud landscape. For businesses seeking a reliable and flexible cloud partner, OVHcloud remains a compelling choice.
FAQS
OVHcloud reported €275.3 million, a 6% like-for-like increase from Q1 2025.
The Public Cloud segment led growth with €58.2 million in revenue, up 15.8%.
Yes, the company reaffirmed its 2026 guidance, expecting to meet growth targets and achieve positive free cash flow.
Expansion of Availability Zones in Europe, focus on sovereign cloud solutions, and AI-driven service improvements.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
