Atos Faces Revenue Drop, Sets Sight on 2026 Acquisitions

French IT group Atos reported a notable drop in quarterly revenue due to contract losses. The company, which underwent financial restructuring last year, plans acquisitions starting 2026. With debt reduced by 2.1 billion euros, Atos is focusing on divestments, cost reductions, and investments in defense and high-performance computing.

French IT giant Atos, known for its supercomputers serving France's nuclear deterrent capabilities, announced a significant decline in quarterly revenue due to key contract losses. The company stated that it will only target acquisitions from 2026 onward, following its recent financial restructuring.

The restructuring, completed last year, slashed Atos' debt by 2.1 billion euros, with banks and bondholders becoming main shareholders. Chief Executive Philippe Salle is spearheading a turnaround strategy emphasizing divestments, cost management, and investments in sectors like defense and high-performance computing.

Salle revealed that expected mergers and acquisitions will commence in September 2026 and intensify between 2027 and 2028. He clarified that these acquisitions will not be very large, targeting companies with revenues between 20 and 200 million euros. Meanwhile, Atos, which also supports Britain's NHS and the Olympics, confirmed its annual and 2028 financial targets despite a 10.5% revenue decline in the third quarter.