#London #United Kingdom #Business Transformation #Industrial AI #IFS

IFS Reports Outstanding Fiscal Year 2025 Growth

In a significant announcement, IFS, a leader in Industrial AI software, reported impressive financial results for the fiscal year that ended on December 31, 2025. The company's Annual Recurring Revenue (ARR) saw a robust growth of 23% year-on-year, paired with substantial improvement in operating margins and customer retention.

Key Highlights of FY2025 Performance

The fiscal year marked a transformative period in the adoption and application of Industrial AI technologies. With a 30% year-on-year increase in cloud revenue and a compelling 114% net retention rate, IFS's growth trajectory positions the company at the forefront of the industrial software market. These results underscore a decisive trend where large enterprises are increasingly implementing AI solutions that yield tangible results across various operational domains, including manufacturing, supply chain management, and field services.

Achievements in Adoption and Deployment

The IFS Industrial AI platform is recognized for delivering exceptional operational results, especially where generic AI methods have not succeeded. Companies that initially adopt targeted AI applications report rapid returns on investment, which encourages expansion across their operations. Noteworthy achievements during the year included:

• - 14% growth in average deal size.
• - A consistent 87% customer satisfaction score indicating high levels of service and effectiveness.

IFS's technological innovations enable users to quickly derive value from AI implementations, making it a powerful resource for businesses aiming to optimize their operational efficiencies.

Innovations Driving Growth

The launch of IFS Nexus Black™ showcased IFS's rapid innovation capabilities, turning customer challenges into actionable and productized solutions in mere weeks. The IFS Agent Studio suite has further empowered firms to design and deploy digital workers, integrating advanced automation and intelligence into critical business functions seamlessly.

To strengthen its market position, IFS has formed strategic alliances with notable names like Microsoft, Siemens, and Boston Dynamics. These collaborations are positioning IFS’s technology as critical for enterprises aiming to enhance their operational efficiencies and ultimately lead their industries in the deployment of industrial AI.

Major Clients and Expansions

Several major corporations embraced IFS's platform this past year, including prominent names like ArcelorMittal, Japan Airlines, and Hitachi Energy. These partnerships reflect a broadening consensus among enterprises regarding the efficacy of IFS solutions in driving substantial operational improvements and competitive advantages.

Strategic Acquisitions

In addition to organic growth, IFS amplified its capabilities and market reach through targeted acquisitions, such as:

• - TheLoops, which introduced an innovative workforce designed specifically for critical industries.
• - 7Bridges, enhancing supply chain efficiencies and transportation optimization.
• - Softeon, which is anticipated to close in the first quarter of 2026, adding warehouse management and robotics integration capabilities.

These acquisitions were instrumental in supporting IFS's robust growth figures and unique standing in the market, underscoring the company's commitment to expanding its Industrial AI offerings.

Conclusion and Future Outlook

Looking ahead, IFS aims to build on its FY2025 momentum by deepening the integration of Industrial AI into everyday operations across various sectors. By continuing to focus on delivering real-world outcomes and embracing advanced AI capabilities, the company is poised for even greater success in the coming years.

Mark Moffat, CEO of IFS, encapsulated the company’s direction with a forward-looking statement about the transition in the industrial sector from trials to scaled operations powered by customized AI solutions. With a solid foundation of recurring revenue and expansion strategies in place, IFS is preparing to lead in an era where efficiency and productivity are more critical than ever for industrial enterprises.