Sage Group plc, the Newcastle-based FTSE 100 global software company, said on Tuesday its revenue increased 10% to £674 million in its first quarter “with all regions performing well” during the three months ended December 31, 2025.

Sage is a provider of accounting, finance, HR and payroll technology for small and medium-sized businesses around the world.

In a Q1 trading update, Sage said: “In North America, revenue increased by 13% to £304m, with a strong performance from Sage Intacct together with continued growth in Sage 200 and Sage 50.

“In the UKIA region, revenue grew by 10% to £194m, driven by the rapid scaling of Sage Intacct alongside continued growth in small business solutions, including Sage Accounting and Sage 50. In Europe, revenue increased by 7% to £176m, with good growth across our accounting, HR and payroll solutions.

“Sage Business Cloud revenue increased by 15% to £574m, driven by balanced growth from both new and existing customers, including cloud native revenue growth of 24% to £253m (Q1 25: £205m).

“Recurring revenue grew by 10% to £655m (Q1 25: £593m), reflecting continued momentum in Annualised Recurring Revenue (ARR) during the quarter. Software subscription revenue grew by 12% to £568m (Q1 25: £507m) resulting in subscription penetration of 84% (Q1 25: 83%).

“On an organic basis (excluding the impact of M&A), total revenue increased by 10% to £673m (Q1 25: £612m), while recurring revenue increased by 10% to £654m (Q1 25: £594m).”

Sage chief financial officer Jacqui Cartin said: “Sage delivered a strong start to FY26, with Q1 organic revenue growth accelerating to 10%, supported by the continued execution of our growth strategy.

“We are investing in innovation across our AI-powered platform, helping small and mid-sized businesses solve their day-to-day challenges and work more productively. We reiterate our full-year guidance, as set out in our FY25 results announcement, and remain focused on driving efficient, sustainable growth and long-term value for all stakeholders.”