OVH Stock: Sharp Decline Over the Week Amid Annual Report Release
The week has been particularly turbulent for OVH stock, which ended with a significant drop as the group unveiled its annual financial results. This event occurred in a context where the CAC 40 and SBF 120 indices showed relative stability over the period. OVH, a cloud and hosting specialist, thus received marked attention on the Parisian market.
Weekly Performance and Market Reaction
By the close of trading on Friday, OVH stock ended at 8.24 euros, marking a weekly decline of 26.03%. This drop comes even though the annual performance of the stock remains positive, with a 4.97% increase over twelve months. During the same period, the CAC 40 index edged up only 0.45% and the SBF 120 by 0.53%, highlighting that OVH's decline contrasts with the general trend of the Parisian market. The high volatility observed this week was characterized by significant price gaps and a marked rotation of capital, reflecting active trading as the company's news fueled discussions. Some market participants may have been surprised by the recent publication, following a period of relative stability where OVH had conducted a public share buyback offer around 9 euros to streamline its shareholder base.
Annual Financial Results
The week was marked by the release of the group's annual results, unveiled on October 21. OVHcloud surpassed the symbolic one billion euro revenue mark for the first time for the fiscal year ending August 31, 2025, reaching 1,084.6 million euros, a growth of 9.3% at constant scope and exchange rates. Adjusted EBITDA rose by 15% to 437.8 million euros, bringing the margin to 40.4%, up by 2 points. Net income came in at 0.4 million euros, showing significant improvement compared to last year's loss. These performances reflect operational leverage and controlled direct cost increases but do not fully offset price pressures and rising financial expenses. Operating income reached 69.4 million euros, with a high margin of 6.4%. Free cash flow doubled over the period, while net debt increased to 1,103 million euros, and financial leverage remained under control at 2.7 times EBITDA. Forecasts for the coming year are more cautious, with expected growth of 5 to 7%. This slowdown in momentum has raised questions, with the company also announcing the appointment of the founder as head of the group and the upcoming presentation of a new strategic plan.
Technical Analysis of the Stock
Technically, the stock is now trading close to its support threshold, located at 8.11 euros, while resistance is significantly higher, at 12.98 euros. The volatility observed over the month reached 23.77, indicating particularly marked price movements. The stock is trading below its 50-day and 200-day moving averages, at 11.10 and 10.65 euros respectively, highlighting the loss of momentum in recent weeks. Technical indicators show a clear weakening of the upward dynamic: the MACD line is in negative territory at -0.77 and the RSI, at only 10, reveals an exceptionally high level of downward pressure. Bollinger Bands indicate an upper bound around 13.87 euros, while the lower bound converges towards the support, at 8.29 euros. Overall, this reflects a phase of increased tension on the stock since the beginning of the week.
