French cloud computing company OVHcloud released a report on Thursday, announcing a 6% organic increase in revenue for its first fiscal quarter, driven by the strong performance of its public cloud services business, while also reaffirming its full-year performance guidance for fiscal year 2026.
The company reported revenue of 273.5 million euros (approximately 319.5 million US dollars) for the three months ending in October, showing growth compared to 263.5 million euros in the same period last year.
Revenue from public cloud services, which accounts for 21% of the group's total revenue, grew by 15.8% on a comparable basis to 58.2 million euros; revenue from private cloud, covering the dedicated server business, increased by 4% to 167.2 million euros.
Octave Klaba, Chairman and Chief Executive Officer of OVHcloud, stated, "With this growth momentum and our financial control capabilities, we are able to confirm all performance guidance for fiscal year 2026, which includes achieving positive free cash flow."
The company reported a net revenue retention rate of 105% on a comparable basis, a figure indicating sustained spending growth from existing customers.
To meet the growing demand for data sovereignty in Europe, OVHcloud has announced plans to expand its cloud infrastructure equipped with three availability zones; this type of infrastructure, featuring three independent availability zones, enhances fault tolerance.
The company stated on Thursday that, following similar projects in Paris and Milan, the new three-availability-zone cloud region in Berlin is expected to be launched in early 2027.
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