Why is OVH stock surging today?

OVH Groupe SA's stock skyrocketed 8.0% to €16.00 after the French cloud computing company unveiled impressive fiscal 2026 earnings results, surpassing every set target. The Paris-based firm reported €1.15 billion in revenue for the year ending August 31, exceeding its 5-7% guidance range with a 7.2% increase on a like-for-like basis.

The acceleration in Q4 growth to 10.5% contributed to adjusted EBITDA rising by 9.7% to €480.5 million, boosting the margin to 42.0% from 40.4% the previous year. Net income reached €9.4 million, a notable improvement from the previous year's €0.4 million.

Management unveiled forward guidance for FY2027, targeting above 10% like-for-like revenue growth, an adjusted EBITDA margin surpassing 42.5%, and another year of positive levered free cash flow. This marked a shift from a turnaround story to a sustained growth phase. Chairman and CEO Octave Klaba praised the achievement, stating, "Twelve months after my return, we have delivered on all of the targets we announced," emphasizing the company's entry into the deployment phase of its redefined AI strategy.

The Public Cloud segment demonstrated particularly strong performance, growing 18.9% like-for-like for the full year and accelerating to 24.3% growth in Q4, becoming the primary driver of overall growth. The company also announced the recruitment of a new CFO, effective December 1, resolving a leadership uncertainty that had previously impacted sentiment.

Despite a broadly neutral market context for European equities, with mixed U.S. indices and no significant macro data releases or central bank events, OVH's cloud infrastructure peers, including global hyperscalers, benefited from sustained enterprise demand for AI-related cloud capacity, further boosting the company's prospects.

The surge in shares, reaching a session high of €16.42, represented a dramatic recovery from the stock's 52-week low of €6.67 earlier this year.