OVHcloud’s 2026 Outlook Disappoints Market Despite Reaching €1 Billion Revenue Milestone

Europe’s largest cloud provider, OVHcloud (OVH.PA), reported nearly 10% annual revenue growth on Tuesday, surpassing the €1 billion ($1.2 billion) mark for the first time. However, its weaker-than-expected 2026 guidance sent its shares tumbling.

By 0842 GMT, OVHcloud’s shares had fallen about 18%, putting them on track for their biggest one-day drop ever if the decline continued.

For the fiscal year 2026, beginning September 1, the company projected organic revenue growth of 5% to 7%, down from 9.3% in 2025. Analysts at Stifel and J.P. Morgan said the market had anticipated stronger growth of around 10%. OVHcloud also aims to improve its adjusted core profit (EBITDA) margin, while expecting capital expenditure to represent 30%–32% of revenue, as it strengthens its Webcloud segment.

For fiscal year 2025, OVHcloud reported €1.08 billion in revenue with an EBITDA margin of 40.4%.

The company also announced that founder Octave Klaba has returned as CEO, following a decision to combine the roles of chairman and CEO. Klaba, whose family holds over 80% of OVHcloud, led the company from its founding in 1999 until 2018, before becoming chairman. He replaces Michel Paulin’s successor, Benjamin Revcolevschi, who had served as CEO since 2024. Klaba will now oversee operations as OVHcloud responds to rising demand for AI services and the growing emphasis on cloud independence amid geopolitical shifts.

OVHcloud reaffirmed its commitment to global expansion, citing growing client demand in Canada, Singapore, and India.

Revenue breakdown showed private cloud sales rose 8.5%, accounting for 62% of total revenue, while public cloud revenue grew 17.5%, making up 20% of total sales. Meanwhile, Webcloud revenue increased 3.7%, contributing the remaining 18%.

Serving nearly 1,200 clients, OVHcloud competes with major U.S. players such as Amazon Web Services (AMZN.O), Microsoft Azure (MSFT.O), and Google Cloud (GOOGL.O).

While declining to comment on discussions with the European Commission, the company confirmed its participation in the bloc’s €180 million tender for cloud infrastructure, launched on October 10.

Klaba added, “It takes time, but we are pleased to see the market moving in the right direction.”

(€1 = $0.8575)