IFS Reports Impressive H1 2025 Growth
Compelling industrial AI use cases, strong execution, and AI-driven demand fuel global growth
IFS, the leading provider of enterprise cloud and Industrial AI software, has announced record-setting results for the first half of the year. The company is redefining enterprise software with its unique approach to Industrial AI, which not only analyzes data but also learns and provides actionable insights. In this period, IFS has significantly outperformed traditional enterprise vendors, showcasing double-digit growth across all critical performance indicators. This reinforces the effectiveness of IFS's strategies and highlights its growing dominance in the Industrial AI sector.
Key Financial Achievements for H1 2025:
- Annual Recurring Revenue (ARR): +30% YoY
- Cloud Revenue: +37% YoY
- Recurring Revenue: +24% YoY (now 82% of total revenue)
Unlike its competitors, IFS is specifically designed for the operational core of industrial enterprises, enabling systems that keep essential services functioning. The company has seen substantial growth in the average customer deal size, enhancing its position further this year. IFS has welcomed partnerships with notable industrial leaders, who are eager to secure their growth trajectory with IFS's advanced solutions. Companies such as Arcelor Mittal, Callaway, Collins Aerospace, Hitachi Energy, and TotalEnergies are some of the industry giants that have chosen to partner with IFS.
In addition to its organic growth achievements, IFS has broadened its industrial AI capabilities through the acquisition of TheLoops. This acquisition has allowed IFS to introduce the first agentic AI workforce designed for complex industries. Furthermore, the launch of Nexus Black, an AI innovation accelerator, is already providing tailor-made, scalable solutions that surpass traditional offerings in the market.
With Nexus Black and TheLoops, IFS enters a transformative phase where self-learning AI agents significantly enhance operational efficiency in real-time. This innovation reduces manual tasks, enabling quicker and smarter decision-making from the ground level to executive levels.
CEO Mark Moffat expressed enthusiasm for the company's trajectory, saying, "Our remarkable growth underscores that clients want actionable and scalable AI solutions. They trust IFS to navigate the Industrial AI revolution effectively." He emphasized the critical connection between IFS's strong performance and its innovations in AI, pointing out that demand continues to rise, setting IFS apart from its competitors.
CFO Matthias Heiden added, "Our financial achievements demonstrate IFS's position as a rapidly growing leader in Industrial AI, supported by a recurring revenue model that prioritizes sustainable operations and agility. Our foundational principles enhance customer value and enable them to achieve long-term success with our solutions. We are not just growing; we are reshaping the potential of industrial companies globally."
Moreover, demand for AI-enhanced solutions from acquisitions like Copperleaf, Poka, Ultimo, P2, and EmpowerMX remains robust, significantly contributing to IFS's positive growth patterns. The strength of IFS's global network of strategic partners has also been instrumental in fostering new alliances and increasing deal sizes.
Highlights of H1 2025
Advances in AI and Innovation
- Launch of Nexus Black: A custom accelerator for robust and secure industrial applications.
- Acquisition of TheLoops: The first agentic AI workforce tailored for critical industries.
- Release of IFS Cloud 25R1: This significant update introduced over 200 AI-driven capabilities.
Market Trends and Industry Recognition
- IFS received a valuation of EUR 15 billion amidst the rising demand for Industrial AI.
- The company was highlighted as the only named Customers' Choice in the Gartner Peer Insights Voice of the Customer for EAM report for 2025.
- IFS ranked #1 in EAM market share for the fourth consecutive year, as per Gartner's Worldwide Enterprise Software report.
- Recognized as a Leader in two IDC MarketScape 2024-2025 Vendor Assessments.
- IFS appointed as an advisor to the Parliamentary Group on AI in the UK.
Contact Information for IFS:
EUROPE / MEA / APJ: Adam Gillbe
Director of Corporate & Executive Communications
NORTH AMERICA / LATAM: Mairi Morgan
Director of Corporate & Executive Communications
Frequently Asked Questions
What is IFS's growth rate for H1 2025?
IFS reported a remarkable 30% year-over-year growth in Annual Recurring Revenue (ARR) for H1 2025.
What major innovations did IFS launch during H1 2025?
The company launched Nexus Black and acquired TheLoops, enhancing their industrial AI capabilities.
How does IFS differentiate itself from traditional software vendors?
IFS focuses on the operational core of industrial businesses, providing tailored AI solutions that drive real results.
Who are some notable companies that partnered with IFS?
Leading brands like Arcelor Mittal, Callaway, and Japan Airlines have partnered with IFS to leverage its industrial AI solutions.
What role do acquisitions play in IFS's strategy?
Acquisitions like TheLoops and prior ones (e.g., Copperleaf and Poka) have strengthened IFS's growth and innovation capabilities.
