en.Wedoany.com Reported - OVHcloud's latest quarterly financial report shows public cloud business growth exceeding 20%, becoming a performance highlight. In the three months ending the quarter, the company achieved revenue of €289.6 million, a comparable increase of 6.9%; total revenue for the first nine months reached €844.9 million, up 6.0%. Among these, public cloud segment quarterly revenue was €65.6 million, a comparable increase of 20.2%; private cloud grew 4.0%, and network cloud grew 2.0%. By business mix, private cloud remains dominant, accounting for 60.1% of quarterly revenue, public cloud 22.7%, and network cloud 17.3%.
The strong recovery of public cloud provides OVHcloud with a clearer growth path. Entry-level customers enter through VPS products, especially after the launch of VPS 2027. Enterprise and scale-up customers are also expanding, driven by a broader product catalog and 3-AZ deployments in Paris and Milan. For European infrastructure buyers, regional availability, data control, and cloud sovereignty have become board-level constraints in regulated industries. Banks, public institutions, defense-related suppliers, and AI companies increasingly seek reliable European alternatives.
In the AI field, OVHcloud is expanding its AI lab. Following the acquisition of Dragon LLM and exclusive negotiations to acquire voice AI specialist Gladia, the company stated that Gladia will bring speech-to-text technology to OVHcloud and OVHai services. At VivaTech, OVHcloud previewed OVHai Workspace, a collaborative AI agent platform combining email, cloud storage, and video conferencing, open to partner applications. The company said it includes end-to-end encryption and local processing of sensitive data.
OVHcloud, along with DEEP and Clever Cloud, has been selected to provide sovereign cloud services for European institutions, with a contract cap of €180 million over six years. This win supports the company's decision to restructure its enterprise sales team, establishing dedicated management in six countries under a new enterprise revenue structure. In the VMware-related field, market opportunities exist: Broadcom's adjustments to VMware licensing policies have caused discomfort in the hosting and enterprise infrastructure markets. OVHcloud's new Premier 2027 server for Managed VMware vSphere is primarily aimed at migration, disaster recovery, enterprise application hosting, and modernization. The product timing is not subtle, even if the company views it as a customer choice. Despite optimization measures in managed private cloud, net revenue retention reached a comparable 102%.
From a regional performance perspective, France remains the core market, accounting for 48% of revenue, with comparable growth of 5.8%. Europe outside France accounts for 29%, growing 7.4%, with growth rate doubling compared to the first half. The rest of the world accounts for 23%, growing 8.6%. The company confirmed its fiscal 2026 guidance: organic revenue growth of 5% to 7%, adjusted EBITDA margin higher than fiscal 2025, adjusted capital expenditure of 33% to 35% of revenue (excluding fiscal 2027 lock-up shares covered by dedicated financing), and positive levered free cash flow.
OVHcloud's quarterly performance shows acceleration, not transformation. Public cloud has resumed growth, AI is being integrated into the product portfolio, enterprise sales capabilities are strengthened, and sovereign cloud has become a commercial lever. For investors and operators, the key lies in whether these elements can form sustained growth while maintaining promised cash discipline. Major execution risks include AI infrastructure costs, enterprise sales complexity, VMware-related customer churn, and pressure on margins and delivery consistency from the need for deeper service expansion.
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