Atos (EU:ATO) reported a significant revenue drop in the third quarter as its sweeping restructuring plan — dubbed “Genesis” — continues to reshape the business.
Revenue came in at €1.98 billion, representing a 10.5% organic decline. The company nonetheless reaffirmed its 2025 profitability and cash flow objectives, signaling confidence in its ongoing turnaround. Shares, however, fell more than 9% in premarket trading on Tuesday.
Net cash outflow for the period was €38 million, achieved without resorting to receivables factoring or other short-term cash measures. This figure included €87 million in restructuring charges as the company pressed ahead with cost-cutting initiatives.
The Atos Strategic Business Unit (SBU) generated €1.62 billion in revenue — down 19% organically — reflecting its continued withdrawal from low-margin contracts and softer market conditions. By contrast, the Eviden SBU surged 77% organically to €356 million, supported by approximately €200 million from the Jupiter contract.
The book-to-bill ratio remained at 66%, unchanged year on year, with improving cross-selling and renewal activity. Atos also pointed to “signs of recovery” in North America and in Germany, Austria, and Central Europe.
Chief Executive Philippe Salle stated: “We continued to execute on our strategy and transformation plan. Business fundamentals are being restored. Our cost base is under control with further restructuring and savings achieved over the summer.”
Atos reiterated its expectation to hit full-year profitability and cash generation targets, projecting a return to organic growth and positive cash flow in 2026 as its sales pipeline strengthens and cost optimizations deepen. The group now forecasts full-year 2025 revenue above €8 billion, factoring in around €200 million of foreign exchange headwinds.
Analysts at Kepler Cheuvreux noted that “revenues are therefore unlikely to return to positive in Q4,” as the Jupiter contract weighed on Q3 results. They expect that impact to ease as new deals ramp up and year-over-year comparisons become more favorable.
The company has revised its constant-currency revenue target downward by roughly €300 million from the €8.5 billion previously guided after Q2. Still, Kepler highlighted that “operating profit is however expected to be around €340 million,” roughly 7% above its prior estimates.
The brokerage added that the “return to an operating margin over 4% confirms the very heavy work that the group is doing on costs,” noting that Atos maintained its operating profit goal despite the lower revenue outlook.
“We keep our Reduce rating on the back of soft momentum in revenues. We also consider 2028 targets to be too optimistic,” it concluded.
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