OVHcloud Q3 revenue rises 6.9% as Public Cloud surpasses 20% growth
OVHcloud has reported third-quarter FY2026 revenue of €289.6 million, a 6.9% increase on a like-for-like basis, marking a sequential acceleration from the 5.1% like-for-like growth recorded in Q2. The European cloud provider confirmed full-year FY2026 guidance unchanged, including a target of positive levered free cash flow by the year end.
Public Cloud was the standout segment, growing 20.2% like for like to €65.6 million and accounting for 22.7% of group revenue. The company attributed the acceleration to strong new customer acquisition in its Starters tier, particularly following the launch of the refreshed VPS 2027 product line, alongside expanding Scalers and Corporate deployments in its three-availability-zone regions in Paris and Milan.
Sovereign cloud and AI strategy
Three structural moves defined the quarter beyond the revenue figures. The first was OVHcloud's selection by the European Commission as part of a consortium with DEEP (POST Luxembourg Group) and Clever Cloud to provide a sovereign cloud for EU institutions. The contract is capped at €180 million over six years. The win gives OVHcloud a reference customer at the apex of Europe's digital sovereignty agenda at a moment when European institutions are actively reducing reliance on US hyperscalers.
The second initiative was the acquisition of Gladia, a voice AI specialist whose speech-to-text technology OVHcloud plans to internalise into its AI Lab. This follows the earlier acquisition of Dragon LLM and positions OVHcloud's OVHai unit to address generative, agentic and multimodal workloads. At VivaTech, the company previewed OVHai Workspace, described as an open, collaborative agentic AI platform with end-to-end encryption and local processing of sensitive data.
The third was a sales-force restructuring: a new chief revenue officer for Corporate, Bruno Ronsse, has been appointed to the Executive Committee and now oversees dedicated teams across six countries. Chairman and chief executive Octave Klaba said the company had "maintained strict financial discipline" and was reaffirming its cash flow target.
Market context and competitive positioning
OVHcloud occupies an unusual position in the European cloud market: it owns and operates 46 data centres and manufactures its own servers, giving it a cost structure and data-residency proposition that hyperscalers cannot easily replicate. That integrated model is central to its sovereign cloud pitch, and the EU institutions contract is the most credible public validation of that positioning to date.
The broader European sovereign cloud market is expanding as the EU AI Act, NIS2, and DORA all create compliance pressure on public-sector and regulated-industry buyers to demonstrate data localisation. OVHcloud competes on this axis with national operators such as Deutsche Telekom's Open Telekom Cloud, Scaleway (Iliad Group) and a cluster of smaller providers. In the public cloud tier it competes indirectly with AWS, Microsoft Azure and Google Cloud, all of which have invested heavily in EU-based infrastructure and data-boundary commitments.
Private Cloud, still the largest segment at 60.1% of revenue, grew 4.0% like for like to €174.0 million. The segment absorbed some churn among Hosted Private Cloud customers affected by Broadcom's post-VMware acquisition pricing increases, but corporate demand offset these losses. The net revenue retention rate reached 102% on a like-for-like basis.
OVHcloud is due to report full-year FY2026 results on 20 October 2026. Investors will be watching whether the AI Lab acquisitions translate into measurable revenue contribution and whether the EU institutions contract converts to recognisable income within the fiscal year.