IT Link: Revenue Down 3.7% in Q1, Annual Targets Maintained
IT Link reported a revenue of 21.03 million euros for the first quarter of 2026, a 3.7% decrease year-over-year. The activity rate hit a low at 89.9%, due to delays in the start of major projects. Despite the downturn, the management maintains its confidence with unchanged targets: annual growth between 1% and 3%, and a current operating result around 6%.
Activity Dip Attributed to Project Start Delays
The group's revenue amounted to 21.03 million euros, contracting by 3.7% compared to Q1 2025 (21.83 million). At constant exchange rates, the decline is 3.4%. The activity rate, a key indicator in the digital services sector, stands at 89.9% in Q1 2026 versus 92.4% a year earlier. This deterioration primarily reflects a lag between order intake and the actual start of several significant projects for the group. France (including Morocco), which accounts for over 80% of the total productive workforce, records a 2.9% decline. Conversely, IT Link Canada shows a revenue growth of 10.8% (+14.2% at constant exchange rates). The international segment as a whole fell by 7.1% (−5.6% at constant exchange rates), hampered by a reduction in public orders in Quebec at the subsidiary Ciao.
Solutions Activities Impacted by Exchange Rate Effects, Services Down by 3.9%
By activity type, service provisions (which make up the majority of the portfolio) fell by 3.9% to 18.56 million euros. Solutions activities (fixed-price developments and license sales) show a decrease of 1.8% to 2.47 million. This segment is particularly sensitive to exchange rate fluctuations due to the growing share of Ciao's Digital Studio and Accessibility offerings. Adjusted for exchange rate impact, this activity shows a much more moderate contraction of 0.6%. In terms of human resources, the group records positive dynamics: the number of employees reached 898 on March 31 (+18 net recruitments for the quarter), and the total productive workforce (including subcontracting partners) rose to 924 consultants compared to 905 a year earlier, confirming alignment with the growth trajectory planned for 2026.
Management Reaffirms Outlook for Return to Growth
IT Link confirms its ambition for a return to growth in the second quarter, supported by commercial successes recorded in Q1 which will materialize starting from Q2. The group maintains its target of a revenue increase between 1% and 3% for the year 2026. Management also aims for an improvement in profitability, with a current operating result around 6% for the fiscal year. However, management remains cautious about the uncertain macroeconomic and geopolitical contexts.
