OVHcloud has started its first quarter of the 2026 fiscal year with a dual message to the market: sustained organic growth and financial discipline as Europe refocuses on digital sovereignty. The company closed Q1 FY2026 with €275.3 million in revenue, representing a +6.0% organic (like-for-like) increase, and reaffirmed its full-year guidance, including expectations of a positive leveraged free cash flow.
The snapshot is significant for two reasons. First, because the quarter demonstrates clear traction in Public Cloud, the segment capitalizing most on elastic infrastructure demand for AI, data, and application modernization. And second, because OVHcloud emphasizes an idea that in 2026 is sounding less abstract: sovereignty is no longer just a slogan; it is becoming a hiring criterion and a key element in the design of regions, availability zones, and “mission-critical” offerings.
Public Cloud drives growth (and the mix begins to shift)
The main engine this quarter was Public Cloud, with €58.2 million, a +15.8% organic increase. It’s not just a rebound: the data suggests that the IaaS/PaaS catalog is finding a balance between customer acquisition and growth within the existing installed base (upsell and cross-sell). The company reports a net revenue retention of 105% on a comparable basis, indicating that existing customers, on average, are spending more than they did a year ago despite the natural loss of some contracts.
Meanwhile, Private Cloud remains the backbone: €167.2 million, a +4.0% organic growth, constituting 60.7% of the quarter’s revenue. Here, the company describes two parallel realities: active sales push in entry-level offerings (“Starters”) and infrastructure optimization for larger clients (“Scalers”), alongside the impact of the departure of two corporate clients due to strategic shifts.
The third segment, Webcloud, grew more moderately: €49.8 million, a +2.3% organic increase. OVHcloud attributes part of the improvement to a competitive pricing positioning strategy that is beginning to show in the entry segment.
Table 1 — Revenue by Segment (Q1 FY2025 vs. Q1 FY2026)
| Segment | Q1 FY2025 (€M) | Q1 FY2026 (€M) | Organic LFL Growth |
|---|---|---|---|
| Private Cloud | 164.5 | 167.2 | +4.0% |
| Public Cloud | 50.3 | 58.2 | +15.8% |
| Webcloud | 48.8 | 49.8 | +2.3% |
| Total | 263.5 | 275.3 | +6.0% |
Europe drives… but the “rest of the world” accelerates more
By geography, France remains the largest base (48% of total for the quarter), but the highlight is the momentum in the Rest of World, with +10.5% organic growth. The company mentions a “promising” rollout of Public Cloud in the United States, while in Europe (excluding France), it emphasizes the launch of the 3AZ approach in Milan.
Table 2 — Revenue by Region (Q1 FY2025 vs. Q1 FY2026)
| Region | Q1 FY2025 (€M) | Q1 FY2026 (€M) | Organic LFL Growth |
|---|---|---|---|
| France | 127.1 | 133.9 | +5.1% |
| Europe (excluding France) | 76.7 | 79.3 | +4.1% |
| Rest of the World | 59.7 | 62.1 | +10.5% |
| Total | 263.5 | 275.3 | +6.0% |
Operational sovereignty: more 3AZ regions and more demanding contracts
Beyond the numbers, OVHcloud aims to anchor its narrative on three pillars:
- Contracts with high security requirements, including “mission-critical” agreements and environments aligned with regulatory demands (in Europe, compliance is no longer negotiable as it once was).
- Expansion of 3AZ regions in Europe: after Paris and Milan, the company targets Berlin by early 2027, specifically to meet sovereignty and regional resilience demands.
- AI as an inevitable workload: OVHcloud is also moving to enhance inference performance and meet market appetite for cost-efficient model deployment.
According to CEO Octave Klaba, the quarter confirms the “full-year guidance” supported by growth momentum and financial discipline, with the goal of reaching a €2 billion revenue milestone.
Investment discipline and focus on execution
In a market where many providers compete through capex and grand announcements, OVHcloud emphasizes control: it maintains its capex forecast between 30% and 32% of revenue, with an adjusted EBITDA margin above FY2025 and a positive leveraged free cash flow.
The company also focuses on internal initiatives: supply chain redesign started in 2025 to ensure server availability and cost control, improvements in customer experience and support, and adoption of AI within the organization to boost productivity and service quality.
Immediate calendar: market watching for execution
With the quarter now reported, the market typically looks for two things: whether Public Cloud maintains its pace (without “buying” growth at any cost) and whether cost discipline is preserved as regions and capacities expand. In the short term, corporate events are scheduled for February and April 2026.
Frequently Asked Questions
What does it mean that OVHcloud grows +6.0% “like-for-like” (LFL) in 2026?
It means growth is measured under comparable conditions (same base), providing a clearer picture of business evolution without perimeter or currency effects.
Why is Public Cloud growing much faster than Private Cloud this quarter?
Because elastic infrastructure demand for new applications, data, and AI tends to concentrate in IaaS/PaaS services, where expanding consumption within existing clients is easier.
What is a “3AZ” region and why does it matter for sovereignty and resilience?
A region with three separate availability zones helps design high availability and business continuity within the same country/region, a key factor for regulatory requirements and critical workloads.
What’s behind the 30%-32% capex guidance for a cloud provider?
It reflects investment policies: how much of revenue is reinvested into infrastructure (data centers, servers, network). Maintaining this range indicates a balance between growth and cash protection.
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