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Enterprise software vendor IFS has posted 25 per cent year-on-year growth in annual recurring revenue for the first quarter of 2026, driven by new customer wins, expansion within its existing base and increasing uptake of AI-driven capabilities across operational workflows.
The company reported cloud revenue growth of 24 per cent year-on-year, a net retention rate of 114 per cent and a recurring revenue mix of 84 per cent of total revenue for the quarter ending March 31, 2026.
New customer wins
A number of large enterprises signed on with IFS during the quarter. The company listed Aramex, Coca-Cola, China Airlines, Drydocks World, FirstSolar, JVCKENWOOD, LATAM Airlines, Miele and Shin Maywa Industries among the new customers choosing IFS.ai in Q1 – all billion-dollar revenue companies.
Growth was attributed to a combination of new logos, solution expansion by existing customers, retention metrics and adoption of AI capabilities across operational workflows.
The shift from AI support to AI execution
IFS is framing the quarter’s results around what it describes as a shift in how its customers are using AI – moving from AI that supports individual tasks and decisions to systems that can plan, decide and execute work across complex environments with minimal manual intervention.
That shift is most visible in asset-intensive and service-driven industries, where uptime, coordination and responsiveness are critical. IFS argues that AI is now embedded in the execution layer of operations for many of its customers, rather than sitting as a decision-support tool alongside existing processes.
Mark Moffat, Chief Executive Officer of IFS, described the trend in operational terms.
“We’re seeing a distinct move from AI supporting work to AI performing work, and that’s changing how our customers run their operations,” Moffat explained. “Through targeted investments, strategic partnerships and industry-specific capabilities that solve real challenges, we’re equipping customers with Industrial AI to build the agility that the next wave of global growth demands.”
Financial resilience
Matthias Heiden, Chief Financial Officer of IFS, pointed to the consistency of performance across regions despite broader economic uncertainty.
“We have delivered a resilient start to 2026, performing in line with our strategic plan,” Heiden noted. “ARR growth of 25 per cent, new customers, strong retention, and continued expansion across our installed base position us well for the year. All regions contributed positively despite macroeconomic headwinds, reflecting the trust customers place in IFS innovation and the ROI they gain.”
The recurring revenue mix of 84 per cent signals a continued shift toward predictable, subscription-based income – a metric that investors and analysts typically watch closely as an indicator of business stability.
Platform expansion through acquisition
IFS made two acquisitions that fed into its Q1 platform development.
The completion of the Softeon acquisition in March 2026 brought warehouse and supply chain execution capabilities into the IFS platform, enabling tighter coordination between planning and real-time operations.
Separately, the acquisition of 7Bridges led to the introduction of IFS.ai Logistics in March, which connects transport planning, execution and financial outcomes. The product is aimed at organisations managing complex logistics networks that need greater precision and automation.
IFS also expanded its Operational Intelligence offering, which combines asset and operations performance management into a unified view designed to detect failures before they occur. The company reported traction in the energy sector and indicated it is now extending the product across other industries.
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Brand partnerships and market recognition
IFS has been building its brand visibility through partnerships in sport, securing the Principal Partner role with Chelsea Football Club and becoming the official Technology Partner of the Cadillac Formula 1 Team.
The Chelsea deal sees IFS provide AI-driven capabilities across the club’s operations, while the Cadillac F1 partnership embeds IFS software across engineering, production and supply chain processes.
On the analyst side, IFS was named a leader in the 2026 IDC report on worldwide manufacturing AI-enabled asset-intensive enterprise asset management applications. It was also the only vendor recognised as a Customers’ Choice in the 2025 Gartner Peer Insights Voice of the Customer report for field service management.
Analyst perspective
Keith Kirkpatrick, Vice President and Research Director for Enterprise Software and Digital Workflows at Futurum Group, offered an independent view on the results.
“Sustained ARR growth combined with strong retention suggests that customers are standardising on platforms capable of supporting long-term operational requirements,” Kirkpatrick commented. “In asset- and service-centric industries, this typically correlates with software that is embedded into planning, scheduling and execution processes, rather than positioned solely as a decision-support layer.”
“The results are consistent with enterprises prioritising measurable operational outcomes over standalone AI functionality,” he added.
Sustainability progress
IFS also published its annual Sustainability Report, outlining progress in decarbonisation, responsible procurement and governance.
The company reported it has maintained 100 per cent renewable electricity across its global operations for a fourth consecutive year. Newly opened sites delivered more than 60 per cent reduction in energy and facilities costs, and 36.2 per cent of employees participated in CSR volunteering activities.
Last Updated on April 23, 2026 by Nick Ross
