OVH stock soars nearly 9% following its first positive free cash-flow

A positive free cash-flow for the first time since the stock market listing

OVH stock gains 8.91% to €16.14 in trading, among the strongest gainers on the CAC All Shares, while the CAC 40 declines 0.69%. The share thus returns to its 20-day moving average at €16.12, following a 3.79% increase last week. The group published its results this morning for the fiscal year ended August 31. The levered free cash-flow reached €24.7 million, compared with -€27.0 million a year earlier, a first since listing.

Net income stood at €9.4 million, compared with €0.4 million for the 2025 fiscal year. "Twelve months after my return, we have achieved all announced objectives," stated Octave Klaba, Chief Executive Officer.

FY2027 targets, valuation and analyst views following publication

For fiscal year 2027, the company targets growth higher than that of the past fiscal year. It is banking on the rollout of its artificial intelligence strategy, with the launch of OVHai Workspace, and on Public Cloud, whose Paris 3-AZ region grew from 20 to 24% in the fourth quarter. Among the risks cited during this publication is pressure on component prices (RAM and drives), which requires price adjustments.

On the analyst side, CIC Market Solutions maintains its buy rating with a price target of €21.00, representing approximately 30% above the current price. According to the consensus of surveyed analysts, the stock trades at 99.9 times expected earnings for the current fiscal year and 55.0 times those for the following year. On the technical side, the 200-day moving average at €12.72 remains well below the price, while resistance at €18.18 constitutes the next identified high level.