OVHcloud reached a historic milestone by exceeding €1 billion in annual revenue, but its muted 2026 outlook rattled investors, sending shares down nearly 18%, their sharpest decline on record. The French cloud provider reported €1.08 billion in fiscal 2025 revenue, up 9.3%, but projected a slowdown to 5–7% growth for 2026 — below market expectations of around 10%.
Analysts from J.P. Morgan and Stifel said the revised guidance fell short of optimism surrounding the company’s expansion in AI and data services. OVHcloud said it plans to improve margins and keep capital spending at 30–32% of revenue, focusing on its Webcloud division and long-term profitability.
The announcement coincided with the return of founder Octave Klaba as CEO, consolidating his leadership as both chairman and chief executive. Klaba, whose family controls over 80% of OVHcloud, will guide the company through its next growth phase amid intensifying competition with Amazon Web Services, Microsoft Azure, and Google Cloud.
Despite investor disappointment, OVHcloud emphasized continued global expansion, highlighting demand from Canada, Singapore, and India, and participation in a €180 million EU cloud tender launched this month. The firm’s segment results showed Private Cloud revenue up 8.5%, Public Cloud up 17.5%, and Webcloud up 3.7%, with a 40.4% EBITDA margin.
