IFS has reported a strong first quarter for 2026, achieving 25% year-on-year growth in Annual Recurring Revenue (ARR), signaling rising enterprise demand for Industrial AI across core business operations.
The company also recorded 24% growth in cloud revenue, a net retention rate of 114%, and a recurring revenue mix accounting for 84% of total revenue. The performance was driven by a combination of new customer wins and deeper adoption among existing clients, with global enterprises such as Aramex, Coca-Cola, China Airlines, and Miele selecting IFS.ai during the quarter.
“We’re seeing a distinct move from AI supporting work to AI performing work, and that’s changing how our customers run their operations.” — Mark Moffat, CEO, IFS
IFS highlighted a significant shift in how organizations are leveraging AI. Rather than using it solely for decision support, enterprises are increasingly embedding AI into execution layers enabling systems to autonomously plan, manage, and execute complex workflows. This trend is particularly prominent in asset-intensive and service-centric industries, where operational efficiency and uptime are critical.
Customers are expanding deployments across sites, assets, and processes, using AI to enhance productivity, reduce inefficiencies, and deliver more consistent outcomes. This transition toward autonomous operations is positioning AI as a foundational component of enterprise strategy.
“We have delivered a resilient start to 2026, with strong ARR growth, high retention, and continued expansion across our customer base.”
— Matthias Heiden, CFO, IFS
During the quarter, IFS also strengthened its platform capabilities through strategic investments and acquisitions. The addition of Softeon enhanced supply chain execution, while IFS.ai Logistics improved transport planning and operational visibility. IFS.ai Operational Intelligence continues to gain traction, enabling predictive maintenance and performance optimization across industries.
IFS further boosted its global brand presence through partnerships with Chelsea Football Club and the Cadillac Formula 1 Team, reflecting its growing role in complex, high-performance environments.
With strong financial performance, high customer retention, and increasing adoption of AI-driven operations, IFS is well-positioned to sustain its growth trajectory as enterprises continue to scale Industrial AI across their operations.
