Key Takeaways

• IFS reported 25% year-on-year growth in Annual Recurring Revenue (ARR) in the first half of 2026.
• Cloud revenue grew by 24%, while recurring revenue represented 84% of total revenue.
• Industrial AI adoption is becoming a key growth driver, particularly across manufacturing, asset maintenance, supply chain, field service and warehouse operations.
• IFS highlighted its AI capabilities through IFS Nexus Black Resolve, IFS Zero and the IFS Loops Agentic Platform.
• The company also reported new customer wins and expanded partnerships, strengthening its position in industrial enterprise software.

IFS reported strong financial performance for the first half of 2026, driven by increasing demand for Industrial AI and cloud-based enterprise software. The company’s results reflect a broader shift among industrial organizations toward embedding artificial intelligence into everyday business operations rather than using it solely for analysis and decision support.

Key Financial Highlights

The company reported the following year-on-year growth figures for the first half of 2026:

• Annual Recurring Revenue (ARR): 25% growth.
• Cloud revenue: 24% growth.
• Recurring revenue mix: 84% of total revenue.

These results highlight the importance of recurring software revenue and cloud adoption in IFS’s business model. They also indicate that customers are continuing to expand their use of the company’s solutions as they seek to improve productivity, operational visibility and business resilience.

Industrial AI Becomes a Key Growth Driver

IFS identified industry-specific AI applications as an important contributor to its performance. Manufacturing companies, asset-intensive organizations and service providers are increasingly exploring AI to address practical operational challenges.

The company is targeting use cases across manufacturing, asset maintenance, supply chain management, field service and warehouse operations. These applications can help businesses identify equipment problems earlier, optimize maintenance activities, improve resource allocation and respond more effectively to operational disruptions.

The focus is shifting from systems that simply provide recommendations to technology that can support or execute defined operational tasks. This creates opportunities for organizations to automate repetitive work while allowing employees to concentrate on higher-value decisions.

AI Innovation Across Enterprise Operations

IFS highlighted several capabilities as part of its expanding Industrial AI portfolio.

IFS Nexus Black Resolve focuses on field service operations, using AI to help predict faults, reduce downtime and enable technicians to resolve issues more efficiently.

IFS Zero targets emissions management, with IFS reporting that the solution can reduce the effort involved in emissions data collection by up to 30%.

IFS Loops Agentic Platform enables enterprises to create and deploy AI-powered Digital Workers. IFS reported that 60% of agentic transactions were fully automated, demonstrating the potential to automate selected workflows.

Customer Wins and Strategic Partnerships

During the first half of 2026, IFS reported new customer selections involving organizations such as Coca-Cola, China Airlines, Drydocks World, First Solar, Miele, JVCKENWOOD and William Grant & Sons.

The company also continued to strengthen its technology ecosystem through partnerships with Siemens, AVEVA and NEC. These relationships aim to connect engineering, operational and enterprise intelligence, enabling businesses to turn data into practical decisions across their operations.

Additionally, IFS’s March 2026 acquisition of Softeon expanded its warehouse management and supply chain execution capabilities, strengthening its proposition for organizations managing complex distribution and logistics environments.

What This Means for the ERP Market

IFS’s results reflect a growing expectation that enterprise software should deliver measurable operational outcomes, not simply digitize existing processes.

For ERP and industrial software buyers, key priorities increasingly include AI-enabled automation, predictive maintenance, supply chain resilience, cloud modernization and better visibility across finance and operations.

As companies evaluate their technology investments, the ability to integrate AI directly into established workflows may become an increasingly important differentiator between enterprise platforms.

Outlook for the Second Half of 2026

IFS entered the second half of the year with continued demand for Industrial AI, strong recurring revenue performance and ongoing investment in its enterprise platform. The company indicated that it would continue showcasing its latest innovations at IFS Unleashed in October 2026.

The broader message is clear: industrial AI is moving beyond experimentation, with businesses increasingly looking for practical ways to automate work, improve asset performance and strengthen operational decision-making.