France’s IT‑services group Atos announced a modest drop in sales for the first quarter, but it also revealed plans to ramp up mergers and acquisitions starting in 2026. The company’s revenue fell 1.6 % year‑over‑year, falling short of analysts’ expectations for the larger European tech player.
Atos said the small decline was mainly due to a slowdown in demand for its cloud‑based services and a temporary dip in its consulting arm. “We expect the trend to reverse as digital transformation projects pick up pace across Europe,” a company spokesperson said. The company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) were slightly lower than the $2.3 billion forecast, but Atos remains focused on long‑term growth.
Looking ahead, the company is set to expand its footprint by targeting strategic acquisitions after 2026. “We plan to identify and integrate complementary businesses that can accelerate our service portfolio and strengthen our market leadership,” the spokesperson added. Atos expects these deals to boost its revenue and bring additional technology capabilities under its umbrella.
Atos is one of France’s most influential digital‑innovation firms, and its loss‑making quarter follows a similar dip by its peer Capgemini. Still, the company’s broad service portfolio—spanning cybersecurity, cloud computing, and consulting—has helped it weather recent market turbulence.
Industry observers note that Atos’s upcoming M&A strategy could position it for bigger wins in the fast‑growing AI and climate‑tech sectors. If the company successfully integrates new pieces, it may achieve higher margins and more resilience against market swings.
For now, Atos’s fan base of investors remains cautious but hopeful that the company’s ambitious plans for 2026 will pay off, granting the French tech firm a stronger footing in the evolving digital economy.
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