ARR grows 25% year-on-year as manufacturers, service organizations, and asset-intensive industries expand AI deployments across operations
IFS, a leading provider of Industrial AI software, has reported strong first-half 2026 financial results, driven by growing adoption of AI-powered solutions across manufacturing, field service, supply chain, warehouse management, and asset-intensive industries.
The company recorded 25% year-on-year growth in Annual Recurring Revenue (ARR) and 24% growth in cloud revenue, while recurring revenue accounted for 84% of total revenue, highlighting the continued shift of customers toward subscription-based and cloud-delivered solutions.
According to IFS, the results reflect increasing demand from organizations looking to apply artificial intelligence to complex operational challenges and generate measurable business outcomes. Industrial enterprises are increasingly deploying AI to improve productivity, reduce downtime, optimize decision-making, and strengthen operational efficiency.
“Customers are scaling AI across operations onto the factory floor, into the warehouse, and out in the field. As measurable business value is returned, Industrial AI is becoming a clear source of competitive advantage and customers are expanding their use of IFS solutions.”
Mark Moffat, CEO, IFS
During the first half of 2026, IFS expanded its Industrial AI portfolio with several new innovations. These include IFS Nexus Black’s Resolve, which uses AI to predict equipment faults and reduce service downtime, IFS Zero, which can reduce emissions data collection efforts by up to 30%, and the IFS Loops Agentic Platform, which enables organizations to deploy AI-powered digital workers, with 60% of agentic transactions now fully automated.
The company also strengthened its supply chain management capabilities through the acquisition of Softeon earlier this year, enhancing its warehouse management and supply chain execution offerings as businesses navigate ongoing supply chain disruptions and volatility.
“With 25% ARR growth, our numbers reflect how deeply customers are scaling AI into operations. These results reinforce the resilience of our business model and our track record of profitable growth.”
Ryan Courson, Chief Financial Officer, IFS
IFS continued to attract major customers during H1 2026, including Coca-Cola, China Airlines, Drydocks World, First Solar, Miele, JVCKENWOOD, William Grant & Sons, and several other global industrial organizations.
The company also expanded its Industrial AI ecosystem through strategic partnerships with technology leaders including Siemens, AVEVA, and NEC, helping customers connect enterprise, operational, and engineering data to drive more intelligent decision-making.
Further validating its position in the market, IFS was recognized as a Leader in the 2026 IDC MarketScape Worldwide Manufacturing AI-Enabled Asset-Intensive Enterprise Asset Management Applications Vendor Assessment.
With strong recurring revenue growth, expanding AI adoption, and continued platform innovation, IFS enters the second half of 2026 well-positioned to capitalize on growing enterprise demand for Industrial AI solutions that deliver measurable business value.
