Strong cloud revenue and strategic expansions position the enterprise software leader for continued momentum heading into H2.
IFS has delivered a robust financial performance for the first half of 2026, posting a 25% year-on-year increase in Annual Recurring Revenue (ARR). Propelled by a 24% rise in cloud revenue and a recurring revenue mix making up 84% of total sales, the results highlight accelerating market demand as industrial organizations scale AI across complex operational environments.
The growth is fueled by increased adoption of targeted AI solutions addressing manufacturing, asset maintenance, supply chain, field service, and warehouse operations. During H1 2026, IFS expanded its capabilities through key innovations:
- IFS Nexus Black’s Resolve: Leverages predictive AI to minimize downtime and accelerate field service repairs globally.
- IFS Zero: Cuts emissions data collection effort by up to 30%.
- IFS Loops Agentic Platform: Empowers enterprises to deploy AI-powered Digital Workers, achieving 60% full automation across agentic transactions.
To further solidify its supply chain execution capabilities, IFS completed the acquisition of Softeon in March 2026. The company also expanded its Industrial AI ecosystem through strategic partnerships with industry giants like Siemens, AVEVA, and NEC, alongside research institutions like MIT CISR. Major global brands, including Coca-Cola, China Airlines, First Solar, and Miele selected IFS during the half to optimize critical workflows.
According to IFS CEO Mark Moffat, Industrial AI has reached a market inflection point, transitioning from isolated experiments into a core source of competitive advantage deployed directly onto factory floors, warehouses, and field operations.
Looking ahead, IFS enters the second half of the year well-positioned, with plans to showcase its latest advancements at the upcoming IFS Unleashed event in October 2026.
