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Investing.com -- OVHcloud shares tumbled around 18% on Tuesday after the company issued a softer revenue growth outlook for fiscal 2026 (FY26), tempering investor sentiment despite record results for the past year.
OVHcloud reported a 9.3% rise in annual revenue to €1.08 billion for fiscal year 2025, marking the first time Europe’s largest cloud provider has crossed the €1 billion threshold.
Adjusted EBITDA margin improved to 40.4%, while net debt increased to €1.1 billion, mainly reflecting a share buyback program, according to CFO Stephanie Besnier. The company said it holds €242 million in liquidity to fund expansion projects through 2030.
By segment, Private Cloud accounted for the bulk of sales, rising 8.5% and representing 62% of total revenue. Public Cloud grew 17.5% to contribute 20%, while Webcloud advanced 3.7% to make up the remaining 18%.
For fiscal 2026, OVHcloud expects organic revenue growth between 5% and 7% -- a slower pace from this year’s target of nearly 10% and missing the 9% consensus cited by Kepler Cheuvreux -- as it focuses on strengthening the Webcloud business.
It also aims for an adjusted EBITDA margin above 2025 levels and plans to allocate 30%–32% of revenue to capital expenditure.
"Strong FY25 delivery overshadowed by weaker near-term growth visibility," Kepler Cheuvreux analysts commented on the report.
"We reaffirm our Hold rating, as solid execution is offset by softer growth prospects," they added.
Alongside the results, the company announced that founder Octave Klaba has returned as chief executive officer, resuming day-to-day leadership after the board decided to merge the chairman and CEO roles.
Klaba, who founded OVHcloud in 1999 and led it until 2018, succeeds Benjamin Revcolevschi, who had served as CEO since 2024. The leadership change comes as the company faces accelerating demand for artificial intelligence infrastructure and growing interest in European cloud sovereignty.