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IFS Drives Forward with Record-Setting H1 2025 Results

IFS, a key player in enterprise cloud and Industrial AI software, has announced exceptional results for the first half of 2025. The company reported a remarkable 30% year-over-year increase in Annual Recurring Revenue (ARR). This performance underscores IFS's strategy to leverage AI technology effectively and indicates strong demand from the market.

Key Financial Highlights

During H1 2025, IFS achieved significant financial metrics, which include:

• - Cloud Revenue: Increased by 37%
• - Recurring Revenue: Up by 24%, increasing to an impressive 82% of total revenue

These figures reveal that IFS is navigating the enterprise software landscape with exceptional efficacy, outpacing traditional competitors in key areas.

Strategic Growth Through Innovation

IFS is not just growing; it’s also pioneering the way enterprises can integrate AI into their operations effectively. The company’s focus is on actionable, learning AI systems that perform real-world tasks. In the first half of 2025, 130 prominent industrial brands, including Arcelor Mittal, Callaway, Collins Aerospace, Hitachi Energy, Japan Airlines, and TotalEnergies, chose to partner with IFS to consolidate their growth strategies.

Major Developments in AI

To further solidify its leading position, IFS expanded its capabilities through the acquisition of TheLoops, which introduced its first agentic AI workforce tailored for complex industries. This acquisition complements the launch of Nexus Black, IFS's AI innovation accelerator, designed to deliver bespoke, scalable solutions that dwarf those produced by conventional platforms.

With these innovations, IFS has entered a new era where self-learning AI agents function in real-time within customer environments. This aids in reducing operational manual efforts and enhances decision-making efficiencies, from the frontline to the boardroom, thereby guaranteeing comprehensive industry impact.

Mark Moffat, CEO of IFS, highlighted that this stellar growth signifies a shift in customer expectations. “Customers are increasingly moving beyond AI theories; they seek AI solutions that tangibly address their real-world challenges at scale.”

Financial Model Built for Resilience & Growth

Matthias Heiden, CFO of IFS, emphasized the strength of the company’s financial model. He noted, “This substantial performance reflects the rapid growth and distinctiveness of IFS as an Industrial AI leader. Our model’s robustness is built on recurring revenue, resilient operations, and agility, all essential in empowering our customers to derive long-term value.”

Demand for IFS's AI-powered solutions from previous acquisitions like Copperleaf, Poka, Ultimo, P2, and EmpowerMX remains vigorous, thereby contributing significantly to the ongoing growth trajectory. The company’s strong global network of strategic partners has also been indispensable in catalyzing revenue growth.

Recognition and Market Position

The market momentum is further validated by IFS’s valuation, which sits at a notable EUR 15 billion, amidst a booming demand for Industrial AI. The company also received recognition as the Customers' Choice in the 2025 Gartner Peer Insights Voice of the Customer for Enterprise Asset Management (EAM) report, demonstrating its leading edge and commitment to customer satisfaction. Additionally, IFS has maintained a consistent ranking as #1 for EAM in Gartner’s Worldwide report for four consecutive years.

Moreover, the company has been recognized as a leader in two separate assessments by IDC MarketScape for 2024-2025, confirming its superior market standing. IFS has also been appointed as an advisor to the UK Parliamentary Group on AI, showcasing its integral role in the dialogue surrounding AI governance and innovation.

The Road Ahead

Looking forward, IFS appears poised for continued growth as it enhances the functionality and reach of its AI solutions. The combination of powerful AI capabilities with strategic acquisitions positions IFS not only as a leader in the current landscape but also as a key innovator reimagining what’s possible for industrial enterprises around the globe. As the demand for capable AI solutions increases, the firm is well-equipped to meet these challenges and lead clients into the future of industrial technology.