Sage profits jump on AI boom; Unveils £300m buyback

(Sharecast News) - Business software group unveiled a £300m share buyback as it posted a jump in annual profits and pinned its hopes on the evolution of artificial intelligence. The company on Wednesday posted a 17% rise in operating profit to £530m as revenue increased by 8% to £2.5bn. Underlying core earnings were up 15% to £694m, with margin increasing by 120 basis points to 27.6%.

Sage said it expected current-year organic total revenue growth to be at least 9% with operating margins trending upwards.

"We are excited by the pace of technological change. AI is opening up new possibilities for businesses and creating a significant opportunity for Sage, enabling us to enhance and accelerate the benefits our software provides," said chief executive Steve Hare.

"Sage Copilot is already creating value, helping customers make smarter decisions and be more productive, while our launch of AI agents is delivering the next wave of intelligent solutions."

Reporting by Frank Prenesti for Sharecast.com