OVHcloud expects to generate weighted average annual organic revenue growth of 11% to 13% and an adjusted core profit (EBITDA) margin of close to 39% in 2026, the French cloud services provider said on Wednesday.

The guidance takes into account temporary slower growth in the cloud market, the group said in a statement published ahead of the its first investor day event later the same day.

Some cloud companies have been grappling with slowing sales, and OVH in October gave a lower-than-expected forecast for 2024.

"Despite this context, OVHcloud's revenue growth has been robust in this period relative to its peers," it said, adding it believes structural growth levers remain valid over the medium and long term.

The group last week posted a 12% rise in first-quarter sales, roughly in line with expectations and largely driven by Europe, and confirmed its targets for 2024 and 2025.

OVHcloud also confirmed its 2024 targets of organic sales growth of 11% to 13% this year, and an adjusted core profit (EBITDA) margin of more than 37%.

  - Reuters