Atos revenue drops in H1 despite UKI momentum

The group points to improving momentum as it advances its Genesis transformation plan

France-HQ organisation Atos Group has reported dipping figures for the six months ended 30 June.

The organisation reported H1 revenue of €3.4bn (£2.9bn), down around 15 per cent from €4.02bn a year earlier.

The decline reflected the disposal of its Bull, Ideal GRP and South American operations.

The group’s South American operations were sold to Brazilian data and AI company Semantix in April.

Bull was bought by the French State for €404m a month prior.

The sale of Finland-HQ Ideal GRP to MAIT Group was completed in February.

At its current perimeter, which excludes the businesses’ operations from both periods, revenue fell 8.9 per cent organically to €3.3bn.

Atos Group’s revenue breakdown

Under the Genesis transformation plan announced in May 2025, the Atos Group restructured into a simplified, dual-pillar organisation: Atos and Eviden.

The Euronext-listed firm’s strategic business unit, Atos, which focuses on digital services, cloud and managed infrastructure, generated revenue of €3.14bn, down 9.1 per cent organically from €3.46bn, impacted by declines across every geography except UKI.

Atos’ UKI business posted a 7.1 per cent organic revenue rise to €606m during the six months ended 30 June, up from €565m.

Momentum was fuelled by a nine per cent organic rise in Q2, supported by increased adoption among existing customers, notably within government, alongside additional business from financial services clients.

The region grew 5.2 per cent in Q1.

In Germany, Austria and Central Europe, the organisation’s biggest market, top line dipped 10.8 per cent organically to €679m due to the managed ramp-down of low-profitability contracts and several large client ramp-downs following insourcing strategies.

In France, the firm’s home market, Atos’ revenue fell 7.5 per cent organically to €546m due to high exposure to the recently muted public sector, despite a strong pick-up in commercial activity at the back end of the second quarter.

North America turnover plummeted 23.6 per cent organically to €493m in H1 2026, impacted by the exit from low-profitability contracts and scope reductions at existing clients.

Performance in International Markets was down 9.1 per cent organically to €445m, while BNN, comprising Belgium, Luxembourg, the Netherlands and the Nordics, saw revenue decrease 7.5 per cent organically to €369m.

On the other hand, its Eviden business, which is focused on cybersecurity, increased 6.1 per cent organically to €155m in H1, marking the segment’s return to growth following a 14 per cent jump in Q2.

Performance was fuelled by growth in defence activities, despite a slowdown in the Middle East caused by the Iran war.

The group has extended its Genesis transformation plan to generate further efficiencies after completing its original three-year savings target ahead of schedule.

It also reduced its total headcount by 13.8 per cent since the end of 2025 to 54,476 employees, reflecting the transformation programme and the disposals of Advanced Computing, Ideal GRP and the group’s South American operations.

Atos hired 2,738 employees during H1.

“A year ago, our priority was recovery. Today, our priority is growth,” said Atos Group chairman and CEO Philippe Salle.

“We have stabilised the business, strengthened the balance sheet, accelerated operational performance and reignited commercial momentum.”

A brighter future?

The group’s pipeline expanded by approximately €760m during Q2, following a €900m increase during the first three months of the year.

New business included a five-year, €50m agreement with a UK energy and utilities provider covering digital workplace, cloud and modern infrastructure services.

Atos also secured contracts and frameworks with the Dutch Ministry of Defence, European Patent Office, Dutch National Police and a European public sector agency.

The group ended June with a backlog of €9.1bn, equivalent to approximately 1.4 years of revenue.

The group confirmed its full-year targets but now expects organic revenue to decline by around five per cent, at the bottom of its previously announced range of negative one to negative five per cent.

It expects organic revenue to grow at a compound annual rate of between five and seven per cent from 2026 to 2028, as well as an operating margin of around ten per cent by the end of that period.

Salle added: “The turnaround of Atos Group is well underway.

“The years ahead will be about unlocking the full potential of the group and establishing Atos as one of Europe’s leading technology champions in the AI era.”