23% ARR growth, 30% cloud revenue growth and 114% net retention highlight accelerating adoption of purpose‑built Industrial AI across global enterprises
IFS has announced strong FY2025 financial results, reporting 23% annual recurring revenue (ARR) growth, 30% cloud revenue expansion, and a net retention rate of 114% as industrial enterprises shift decisively from AI experimentation to full‑scale operational deployments. The company closed the year with 83% of revenue now recurring and a five‑point operating margin expansion, underscoring disciplined execution and mounting customer demand for purpose‑built Industrial AI.
“FY2025 was the year Industrial AI crossed the chasm. Customers are scaling AI across the operations that matter most and expanding faster as they see ROI.”
— Mark Moffat, CEO, IFS
The results reflect a fundamental shift across asset‑intensive and service‑centric industries from manufacturing and energy to aviation, utilities, and field service management where organizations are rapidly scaling AI to deliver measurable outcomes. Customers typically begin with targeted operational use cases, drive fast ROI, and then expand IFS deployments across additional plants, fleets, and business units.
According to IFS, this expansion dynamic drove a 14% increase in average deal size, an 87% CSAT score, and strong lifetime value metrics. Flagship FY2025 customer wins included ArcelorMittal, Collins Aerospace, Dixstone, Hitachi Energy, Japan Airlines, TotalEnergies, Westinghouse, Homeserve, and the Cadillac Formula 1 Team.
“ARR rose 23%, NRR reached 114%, and recurring revenue hit 83% — these results reflect the quality and resilience of our growth.” — Matthias Heiden, CFO, IFS
IFS continued to expand its Industrial AI leadership through strategic acquisitions. In 2025, the company acquired TheLoops, enabling agentic AI workforces capable of 10× productivity gains; 7Bridges, adding AI‑driven supply chain optimization; and soon‑to‑close Softeon, extending Industrial AI into warehouse management and robotics‑driven automation. Earlier acquisitions including Copperleaf, Poka, and Ultimo also materially contributed to growth.
CEO Mark Moffat said IFS is now scaling faster than its competitors. “IFS’s growth is double that of peers. Our AI platform is purpose‑built for industrial complexity, and customers are committing more deeply as they expand.”
CFO Matthias Heiden said the company enters 2026 with strong visibility and financial resilience. “Our results demonstrate the quality of growth and our ability to keep investing in innovation while expanding margins.”
IDC’s Micky North Rizza said IFS is well‑positioned as enterprises move to industry‑specific AI platforms that deliver predictable, operational outcomes at scale.
