Atos has presented its strategic transformation plan, Genesis. This plan should lead the company to sustainable growth and improved profitability over the next four years. It involves a significant simplification of the business structure, fewer brands, and a focus on core countries. In addition, Atos is making significant AI investments and focusing on a higher operating margin of 10% in 2028. Revenue is expected to rise between €9 billion and €10 billion.
Following the successful completion of its financial restructuring at the end of 2024, the French IT group presents a four-year plan. Atos’ Genesis plan aims to secure a strong market position by 2028. Philippe Salle, Chairman and CEO of Atos Group, announced the plan during a Capital Markets Day in Paris.
Genesis positions two brands: Atos and Eviden
At the heart of the Genesis transformation plan is a radical repositioning of Atos, which is to be seen as a global AI-based technology partner. The goal is to deliver secure end-to-end digital solutions. To this end, the company is simplifying its portfolio to two clear brands: Atos and Eviden.
Atos will become a services company organized around six business lines: Cloud and modern Infrastructure, Cyber Services, Data and AI, Digital Applications, Smart Platforms, and Digital Workplace. Eviden will become a product company organized around four product lines: Cybersecurity Products, Advanced Computing, Mission-Critical Systems, and Vision AI.
In addition, Atos will focus more on the core countries where it is well represented. This will be done from six regional hubs. The company will divest itself of non-core countries that do not meet its strategic or financial objectives. The focus will be on France, Germany, Austria and Eastern Europe, Benelux and Nordic countries, the United Kingdom and Ireland, and the United States. A hub for international markets will remain, but will likely be significantly downsized.
Focus on cost reduction and AI innovation
Atos has developed a program to significantly reduce costs. The organization’s structure must be adapted to the new business model and associated structure. This includes optimized services, stricter contracts, and reducing general operating expenses to approximately 5 percent of the revenue in 2028. In addition, Atos wants to increase offshoring. This means certain activities and processes will be moved to countries that can do this more efficiently and cheaper.
Atos also has room for new activities within the Genesis plan. By establishing a new special business unit for Data and AI, Atos wants to better position its expertise. This is necessary to provide AI and Data services to customers. This business unit is expected to grow from 2,000 to 10,000 employees by 2028. Within the entire group, 100% of the workforce must be AI-certified by 2026. There will soon be no room for people without AI skills.
To strengthen its position in future growth markets, Atos plans to invest €500 million in R&D over the next four years and €100 million in start-ups.
Ongoing sales processes and financial targets
Atos has received a non-binding offer from the French government to acquire its Advanced Computing activities. The value is €500 million, which could rise to €625 million including earn-outs. This offer is valid until May 31, 2025. Discussions about this acquisition are ongoing. The sale process for Mission Critical Systems and Cybersecurity Products has been temporarily suspended.
For 2025, the Group expects revenue of approximately €8.5 billion, a decrease from the reported €9.6 billion in 2024. The operating margin will then be approximately 4%. In 2026, the company expects positive organic growth.
For 2028, Atos targets organic revenue growth of €8.5 to €9 billion. This could rise to €9-10 billion through potential strategic acquisitions. An operating margin of approximately 10% is expected.
Stronger liquidity and lower debt
Following the financial difficulties of recent years, Atos now has a strong liquidity position, which amounts to approximately €2 billion as of March 31, 2025. No debts expire before the end of 2029, giving the company the time and flexibility to execute its strategy, which is expected to lead to a significant reduction in debt.
The cash flow generated in the coming years will mainly be used to reduce debt. However, targeted strategic acquisitions will be considered. No dividend payments or share buybacks are expected until 2028.
Genesis is a large-scale transformation plan with which Atos hopes to regain its position as a stable player in the global IT market. This comes after years of financial uncertainty and structural challenges.