French IT service provider Atos had a significant decline in revenue in the third quarter of 2025. The company attributes the decline mainly to the loss of several major contracts. Atos has announced that it will not be active in the acquisition market again until 2026, according to Reuters news agency.
Atos, known as a supplier of supercomputers that contribute to France’s nuclear deterrent, has gone through a turbulent period in recent years. After financial problems that nearly brought the company down in 2024, it underwent a major restructuring that reduced its debt by €2.1 billion. Banks and bondholders became the main shareholders in the process.
Since then, CEO Philippe Salle has been working on a recovery plan that focuses on divestments, cost savings, and targeted investments in strategic sectors such as defense and high-performance computing. According to Salle, growth through mergers and acquisitions is planned, but not until September 2026. Atos wants to accelerate that process in 2027 and 2028. He indicated that the company is focusing on medium-sized acquisitions of companies with revenues between €20 million and €200 million.
Weaker results in the US and UK
Atos’ revenue in the third quarter amounted to €1.98 billion, a decrease of 10.5 percent compared to the same period last year. The decline was particularly noticeable in North America and the United Kingdom, where contract losses weighed heavily. In contrast, the Eviden division, responsible for supercomputers, among other things, showed strong growth thanks to the Jupiter contract worth approximately €200 million.
Atos managed to limit net cash outflow in the quarter to €38 million, despite €87 million in restructuring costs. At €1.77 billion, the cash position remained comfortably above the agreed minimum levels. The group confirmed its profit and cash targets for 2025, as well as its financial targets until 2028.
According to its Genesis strategic plan, Atos expects to return to organic growth and positive cash flow in 2026. By 2028, the company is targeting revenue of between €8.5 billion and €9 billion and an operating margin of around 10 percent.