OVHcloud Accelerates in Q3 Due to Public Cloud and Confirms 2026 Targets
OVHcloud reported a revenue of €289.6 million in the third quarter of fiscal year 2026, marking an organic growth of 6.9% on a comparable basis. This acceleration is primarily driven by the public cloud, which saw a 20.2% increase, while the group confirms all its annual targets, including organic growth between 5% and 7% and a positive leveraged free cash flow.
Public Cloud Drives Quarterly Growth
Third-quarter revenue amounted to €289.6 million, up from €271.9 million a year earlier. On a comparable basis, growth reached 6.9%, after 6.0% in the first quarter and 5.1% in the second quarter of fiscal 2026. The public cloud is the main driver of this growth: it accounts for €65.6 million in revenue, representing 22.7% of the quarter's total revenue, and has increased by 20.2% on a comparable basis. OVHcloud attributes this momentum to a strong customer acquisition in the Starters segment, particularly around VPS offerings following the launch of VPS 2027, as well as the expansion of the Scalers and Corporate segments.
Private Cloud Shows More Moderate Progress
The private cloud remains the group's largest segment, with revenue of €174.0 million in the third quarter, accounting for 60.1% of the revenue. Its comparable growth reached 4.0%. In the Hosted Private Cloud, the press release indicates that growth in the Corporate segment offsets the churn of some Starters and Scalers clients affected by Broadcom's price increases. The Web Cloud generated €50.0 million in revenue, up 2.0% on a comparable basis, driven particularly by client acquisitions in domain names and the launch of new offerings such as Webhosting 2027, Managed Hosting for WordPress, and OVHcloud Video Center.
A Net Retention Rate of 102% and Reaffirmed Financial Discipline
OVHcloud reports a net revenue retention rate of 102% on a comparable basis. According to the definition provided by the group, a rate above 100% means that the revenue generated from clients present in the previous year increases more than the revenue lost due to churn. The group also indicates it maintains strict financial discipline, combining rigorous cost management and focus on cash generation. It confirms targeting for fiscal 2026 organic growth between 5% and 7%, an adjusted EBITDA margin higher than that of 2025, adjusted capex representing between 33% and 35% of revenue, excluding inventory held for fiscal 2027 covered by dedicated financing, and a positive leveraged free cash flow.
