OVHcloud confirms its outlook as public cloud growth accelerates past 20%

At a glance:

• Q3 public cloud revenue grew 20.2% to €65.6M, lifting total revenue 6.9% to €289.6M.
• OVHcloud reaffirmed FY2026 targets of 5‑7% organic revenue growth, higher EBITDA margin and capex of 33‑35% of revenue.
• The firm secured a share of the EU’s €180M sovereign‑cloud contract, reinforcing its European alternative status.

Strong Q3 performance

OVHcloud posted €289.6 million in revenue for the three months ending May, a 6.9% like‑for‑like increase and a 6.5% rise in reported terms. The jump follows a 5.1% organic growth in the second quarter, marking a clear acceleration. Chairman and CEO Octave Klaba highlighted the company’s "maintained strict financial discipline," noting that the strong public‑cloud segment underpins the improved top line.

The overall result was driven almost entirely by the public‑cloud unit, which now contributes just under 23% of total revenue. Its 20.2% like‑for‑like growth to €65.6 million represents a sharp rebound from the 12.9% expansion recorded in the previous quarter. Without this segment, the headline figure would have been far less impressive, underscoring its strategic importance to OVHcloud’s portfolio.

Public cloud drives growth

Public Cloud's double‑digit expansion was fueled by robust acquisition of smaller "Starters" accounts, especially virtual private server products. The company also expanded its three‑availability‑zone regions in Paris and Milan, strengthening its European footprint. This momentum helped the public‑cloud segment climb back above the 20% growth threshold, a level the firm had previously struggled to maintain.

Private Cloud and Web Cloud continued their modest trajectories, each contributing to a diversified revenue mix. Private Cloud, still the largest business at 60% of revenue, grew 4.0% to €174.0 million, while Web Cloud edged up 2.0% to €50.0 million. Existing customers kept spending, with a net revenue retention rate of 102% on a like‑for‑like basis, indicating solid demand across legacy services.

European sovereign cloud ambitions

OVHcloud is one of four winners of the European Commission’s €180 million sovereign‑cloud contract for EU institutions, a framework that can run up to six years. The consortium includes POST Luxembourg’s DEEP unit, OVHcloud, and Clever Cloud, reflecting a collaborative European push to reduce reliance on American hyperscalers. This win positions OVHcloud as a key subcontractor for high‑profile projects such as the European Central Bank’s digital‑euro initiative.

The sovereignty narrative, however, faces practical limits. Although OVHcloud operates 46 data‑centers across Europe, the underlying hardware still depends on chips designed and manufactured outside the continent. Critics argue that this creates a "managed dependence" rather than true independence, a gap the company is trying to close by building out controllable parts of its stack.

AI and stack expansion

During the quarter, OVHcloud entered exclusive negotiations to acquire Gladia, a voice‑AI specialist, integrating its speech‑to‑text technology into the OVHai unit. The move was showcased at VivaTech in Paris with the preview of OVHai Workspace, an agentic AI platform that bundles email, storage, and video conferencing with end‑to‑end encryption. This strategic focus aims to give customers a "trusted cloud" that aligns with the sovereignty debate's demands.

The company also reorganized its corporate sales force across six countries under a new Chief Revenue Officer, Bruno Ronsse. This restructuring is designed to capitalize on the "trusted cloud" demand generated by European policymakers and enterprises seeking greater data control. Together, the AI acquisitions and sales realignment illustrate OVHcloud's broader effort to differentiate itself from pure‑play hyperscalers.

Geographic reach and customer base

Growth was broad across regions, with France—accounting for just under half of group revenue—up 5.8% like‑for‑like. The rest of Europe accelerated to 7.4% growth, more than double its first‑half rate, driven by stronger public‑cloud momentum. Meanwhile, the rest of the world posted an 8.6% increase, highlighting OVHcloud's expanding global footprint.

The provider serves 1.6 million customers in over 140 countries and crossed the €1 billion revenue mark for the first time in its last full year. This scale supports the company's ability to invest in new regions and services while maintaining its position as one of the few genuine European alternatives to the American hyperscalers.

Outlook and next steps

OVHcloud confirmed all of its FY2026 objectives, including organic revenue growth of 5%‑7%, an adjusted EBITDA margin above FY2025 levels, and adjusted capital expenditure of 33%‑35% of revenue. The firm expects to report its full‑year results on October 20, when analysts will scrutinize progress against these targets.

Looking ahead, the company plans to continue building out the controllable parts of its technology stack and to leverage its sovereign‑cloud wins to attract new public‑sector customers. The combination of solid financial discipline, strategic AI integrations, and geographic expansion positions OVHcloud for sustained growth in a competitive European cloud market.