RWS Holdings plc (LSE:RWS) reported a return to organic revenue growth for the financial year ended 30 September 2026, with adjusted profit before tax expected to increase approximately 9% year on year. The language technology and AI solutions group also confirmed progress across its three operating segments and expects to complete its acquisition of Acolad within the next two weeks.
In its unaudited full-year trading update, RWS said reported revenue is expected to reach approximately £700 million, representing a 2% increase from the previous year. Organic constant currency revenue growth was approximately 3%, compared with a 0.7% decline in FY2025.
The company expects adjusted profit before tax to meet market expectations, with its adjusted profit margin increasing to approximately 9.4% from 8.8% in the preceding financial year.
Revenue Growth and Profitability in FY2026
RWS expects reported revenue of approximately £700 million for FY2026, following a 4% revenue decline in FY2025.
Organic constant currency revenue increased approximately 3% over the year, compared with a 0.7% contraction in the previous financial period.
Adjusted profit before tax is expected to rise approximately 9% year on year, including the impact of a £1 million loss associated with Obviously Group during the period.
The adjusted profit before tax margin is forecast at approximately 9.4%, an increase of 0.6 percentage points from the 8.8% reported for FY2025.
RWS also reported cash conversion ahead of its expectations. Net debt stood at approximately £38 million at 30 September 2026, compared with £32.5 million at 31 March 2026, following an initial £16.5 million payment for the acquisition of Obviously Group.
The figures remain unaudited ahead of the publication of the company’s full-year financial results in December.
Generate Segment Records Double-Digit Organic Growth
RWS reported double-digit organic constant currency revenue growth in its Generate division during FY2026.
The company attributed the increase primarily to its TrainAI business, which recorded higher activity during the first half of the financial year.
According to RWS, performance benefited from an expanding customer base and continued demand from developers of frontier AI models.
Generate was one of two operating segments to report organic revenue growth during the financial year, alongside Protect.
Transform Revenue Declines as AI Translation Products Advance
The Transform division recorded a mid-single-digit decline in organic constant currency revenue during FY2026.
RWS said its services business maintained activity across Europe, the Middle East and Africa, Asia-Pacific and global technology customers. The group also rationalised parts of its client portfolio during the period.
The company launched Language Weaver Pro, developed in collaboration with Cohere, in March 2026. RWS reported initial revenue contributions from the product during the second half of the financial year.
A next-generation translation management platform is scheduled for launch in November 2026 as part of the company’s technology development programme.
In September, RWS was named a Leader in The Forrester Wave: Localization Services, Q3 2026. According to the company, the evaluation recognised its capabilities in hyperlocalisation, AI-readiness services and multimodal localisation.
The Transform division remains a focus of RWS’s transition towards AI-based translation and language technology services.
Protect Segment Grows Following Obviously Group Acquisition
RWS reported mid-single-digit organic constant currency revenue growth in its Protect division.
The company attributed the increase to new customer contracts and an expanded product portfolio.
During the financial year, RWS completed the integration of Obviously Group, extending its activities into brand protection and adding an intellectual property management platform to the division.
The group also invested in personnel and technology within Protect to support its planned expansion.
The acquisition contributed a £1 million loss during FY2026, which was included in the group’s adjusted profit before tax expectations.
Acolad Acquisition Expected to Complete Within Two Weeks
RWS confirmed that it has received the necessary regulatory clearance for its proposed acquisition of Acogroup, the parent company of Acolad.
Approvals have been obtained from the French Ministry for the Economy, Finance and Industrial, Energy and Digital Sovereignty, together with the relevant French Works Councils.
The company expects to announce completion of the transaction within the next two weeks.
According to RWS, the acquisition is intended to expand its presence in Europe, increase its enterprise customer base and provide additional opportunities to offer services across its Generate, Transform and Protect divisions.
The transaction forms part of the group’s go-to-market strategy announced in December 2025.
Strategic Programme Focuses on Sales, Technology and Efficiency
RWS reported progress across the three strategic priorities established in December 2025: go-to-market development, technology and innovation, and operational simplification.
Within its commercial operations, the group reported new customer wins across several end markets and continued investment in sales capabilities. The proposed acquisition of Acolad is also intended to expand its European operations and cross-selling opportunities.
Technology initiatives during FY2026 included the launch of Language Weaver Pro and the addition of Obviously Group’s intellectual property management platform. A further translation management product launch is planned for November.
RWS also reported changes to internal processes, delivery operations and automated workflows. Management expects these initiatives to improve productivity measures across the group.
The company said all three operating segments delivered revenue in line with its internal expectations for the year.
CEO Comments on FY2026 Performance and Outlook
Ben Faes, chief executive officer of RWS, commented on the group’s financial performance and operational developments:
“I am pleased with the progress that the Group has made in FY26. We returned to growth, grew profit and operating margin, and generated strong cash.
“The Generate and Protect segments are driving profitable growth. In Transform, we are moving at pace to AI-led technology. Language Weaver Pro is in market and our next generation translation management platform launches next month.
“We enter FY27 in a stronger position. The acquisition of Acolad is expected to complete shortly, adding scale in Europe and a larger enterprise client base for all three segments. Our investment in sales capability is intended to support improved organic growth in FY27, including in Transform technology revenue.
“AI is reshaping our industry and RWS is leading that change. Our vision is clear: to be the cultural intelligence layer for enterprise AI. I would like to thank the whole RWS team for their commitment, energy and focus during the year.”
The company expects its investment in sales capabilities to support organic revenue growth during FY2027, including revenue generated by technology products within Transform.
Board Changes and Full-Year Results Date
RWS confirmed that Patrick De Smedt joined the board as chair on 8 October 2026, following the announcement of his appointment on 17 September.
He succeeds Andrew Brode, who served as interim chairman for the preceding nine months.
The group is scheduled to publish its full-year financial results for the year ended 30 September 2026 on 15 December 2026.
Those results will provide the company’s final financial figures following the unaudited trading update.
More About RWS Holdings
RWS Holdings plc (LSE:RWS) provides language technology, AI-related services and intellectual property solutions to enterprise customers.
The group operates through three segments: Generate, Transform and Protect. Its activities include AI training data services, translation and localisation technology, and intellectual property management.
During FY2026, the company expanded its product portfolio through the launch of Language Weaver Pro and the integration of Obviously Group. It is also progressing the acquisition of Acolad, which is expected to extend its European operations.
RWS expects to report approximately £700 million in annual revenue and a 9% increase in adjusted profit before tax for FY2026, subject to confirmation in its full-year results on 15 December 2026.
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