Atos deploys ‘Genesis’ strategy to reach €10bn revenue by 2028
The new plan marks the end of Tech Foundations and the launch of a data and AI business line
Atos Group today has launched a four-year strategic and transformation plan to bring the business back on the up after a challenging two years since 2023, which saw stagnating revenues, several CEO changes, as well as a business split.
The turnaround strategy aims to bring revenue between €9 to €10bn (£7.59bn to £8.42bn) with an operating margin of around ten per cent in 2028.
Atos’ ongoing reorganisation has resulted in two main brands, Atos and Eviden.
The reorg will see Atos organised around six business lines: cloud and modern infrastructure, cyber services, the newly created data and AI division, digital applications, smart platforms, and digital workplace.
The second brand, Eviden, will be focused around four product lines: cybersecurity products, advanced computing, mission-critical systems, and vision AI.
This shift marks the end of Tech Foundations, Atos’ business line in managed services, focusing on hybrid cloud infrastructure, employee experience, and technology services.
In April 2024, Czech billionaire Daniel Kretinsky made an offer to buy Tech Foundations for €2bn.
By doubling down on infrastructure, workplace and digital, and scaling technologies such as advanced cybersecurity as well as data and AI, the reseller intends to attract more income from its customer base, its new business revenue streams, and see an accelerated development from new product and industry offerings.
The new data and AI division will aim to deliver higher-value offerings to clients through a full-stack data and AI engine industrialised for scale, while achieving higher delivery efficiency and lower costs.
Atos also intends to go on a multi-year hiring drive and grow this division from 2,000 to 10,000 employees by 2028.
100 per cent of Atos’ workforce will be AI-certified by 2026.
From now on, the French company will focus on six regional hubs where it has the strongest activity: France; Germany, Austria and Eastern Europe; Benelux and the Nordics; UK and Ireland; NORAM; and international markets.
Atos will soon leave several countries among international markets that do not meet its strategic or financial objectives.
2025 and beyond
While expecting rainbow after the storm, the company plans for revenue to keep plummeting in FY25, reaching €8.5bn compared to €9.6bn the year prior.
This decrease is reportedly due to perimeter changes, voluntary contract reviews, and low business traction prior to the completion of the financial restructuring.
Operating margin is expected to go up to four per cent, up two per cent from FY 2024, thanks to voluntary contract reviews and the initial impact of cost reduction initiatives.
Atos expects organic growth to return to positive territory in 2026.
In 2028, it anticipates revenue to reach between €8.5bn to €9bn, a five to seven per cent CAGR between 2025 and 2028.
Further M&A could take revenue to €9 or €10bn.
The reseller also plans to reach operating margin of around ten per cent with full benefit of the cost reduction initiatives and structurally profitable growth, partially offset by accelerated investment in R&D.
“Atos group is at an exciting inflexion point,” said Philippe Salle, group chairman and CEO of Atos.
“With the group’s financial structure now secure, our ‘Genesis’ strategic and transformation plan will ensure that we strengthen our position as a global leader in cutting-edge technology solutions and deliver appreciable growth in revenue and profitability over the next four years.
“There are very few companies in the world that can provide true end-to-end digital solutions for clients, at scale, in some of our most challenging and complex industries.
“Atos Group is one of them.”
ESG commitment
The organisation reported that it still intends to reach its net zero target 2050, aligned with the Science-Based Targets initiative (SBTi), while helping its clients decarbonise.
Regarding diversity, Atos will aim to have 40 per cent female new hires by the end of the year.