Atos Posts €8 Billion in Annual Revenue, Sees Progress in Turnaround Plan

French IT services company Atos reported full-year revenue slightly above €8 billion ($9.3 billion) on Friday, meeting its annual target and reflecting progress in its ongoing turnaround following major financial restructuring.

The company has cut its workforce by 19 percent, bringing headcount to 63,193 employees, as part of its “Genesis” restructuring programme. The initiative is designed to restore profitability after several years of financial challenges.

Revenue in Atos’ core business unit fell 16.2 percent organically to €6.96 billion, despite the company securing a significant cybersecurity contract with the European Commission during the year. In contrast, sales in the Eviden division grew 6.7 percent to €1.04 billion, supported by the delivery of the Jupiter supercomputer in Germany.

At the end of December, Atos reported a backlog of €10.7 billion, equivalent to 1.3 years of revenue. The strong order book underpins the company’s confidence in its recovery strategy and provides visibility on upcoming contracted work.

Looking ahead, Atos expects 2026 to be a “year of stabilisation,” aiming for positive organic revenue growth, while noting that market challenges could limit growth to a 5 percent decline. The company plans to accelerate growth in 2027 and 2028, targeting annual revenue increases of 5 to 7 percent and an operating margin of 10 percent by 2028.

The firm has also set financial objectives aimed at reducing its leverage ratio, with net debt expected to fall below 1.5 times operating income by 2028. Atos is pursuing an investment-grade credit rating as part of its broader financial strategy.

Executives said the company’s turnaround reflects both operational adjustments and strategic investments in high-value services, including cybersecurity, cloud solutions, and high-performance computing. They added that Eviden’s growth demonstrates Atos’ ability to deliver advanced technology solutions to government and enterprise clients while maintaining a focus on profitability.

Analysts said the results indicate that Atos’ restructuring measures are stabilising the business and laying the groundwork for a sustained recovery. The company’s large contract backlog provides confidence that it can weather market pressures while pursuing its medium-term growth targets.

Atos continues to focus on streamlining operations, improving cost efficiency, and targeting sectors with high growth potential. The company said it remains committed to its financial and operational objectives, signalling that the combination of restructuring and strategic investments positions it for stronger performance in the coming years.