Weak Start to 2026#
Atos, a technology services company, reported a challenging beginning to 2026 on Tuesday. The company faced a decline in first-quarter revenue due to delayed decisions from clients and the exit from less profitable contracts. Despite these challenges, Atos noted that its turnaround efforts are beginning to show positive results.
Revenue Decline#
The company recorded a revenue of 1.64 billion euros, reflecting an organic decline of approximately 11% compared to the same quarter last year. This decrease was influenced by the exit from low-profitability contracts and a slowdown in business activity in North America, where some clients opted to take a cautious approach.
Signs of Improvement#
On a positive note, Atos reported an improvement in its commercial momentum. The book-to-bill ratio, which measures the amount of new business compared to revenue, increased to 87% from 83% a year earlier. Additionally, the company’s qualified sales pipeline grew by about 900 million euros during the quarter, indicating potential future business opportunities.
Revised Outlook#
Atos confirmed its outlook for 2026 but adjusted its expectations for organic revenue, now projecting a decline of 1% to 5%. This is a shift from a previous forecast that included the possibility of growth but acknowledged a potential drop of up to 5%. The company aims to maintain an operating margin of around 7%. Looking ahead, Atos anticipates growth to pick up from 2027, targeting a revenue growth rate of 5% to 7% annually through 2028, with an operating margin goal of approximately 10% by that time.