IFS Drives Unprecedented Growth in H1 2025
Compelling industrial AI use cases, strong execution and AI-driven demand fuel global growth
IFS, the prominent provider of enterprise cloud and Industrial AI software, has announced astonishing results for the first half of the fiscal year. The company is reshaping the enterprise software landscape with Industrial AI that acts, learns, and delivers real-time solutions. In the first half of the year, IFS exceeded the performance of traditional enterprise vendors, showcasing substantial growth across all key performance metrics. This success highlights the effectiveness of IFS's strategic approach and the scalability of its operational model as it continues to solidify its position as a leader in Industrial AI.
Key Financial Highlights for IFS in H1 2025:
- Annual Recurring Revenue (ARR): +30% Year-over-Year (YoY)
- Cloud Revenue: +37% YoY
- Recurring Revenue: +24% YoY (now 82% of total revenue)
What sets IFS apart from traditional software vendors is its targeted focus on the operational core of industrial businesses. The company powers real-world systems essential for efficient operations. In the first half of the year, IFS saw significant growth in the average size of deals from new customers, with 130 leading industrial brands choosing to partner with IFS, including notable names like Arcelor Mittal, Callaway, Collins Aerospace, Hitachi Energy, and Japan Airlines.
Beyond organic growth, IFS has enhanced its position in Industrial AI through strategic acquisitions like TheLoops, which has allowed the company to launch the first agentic AI workforce tailored for complex industries. This initiative, along with the introduction of Nexus Black, IFS's AI innovation accelerator, has enabled the creation of custom scalable solutions that surpass what traditional platforms can offer.
With Nexus Black and TheLoops, IFS is entering a new era of enterprise software, where self-learning AI agents function in real time within customer environments. This advancement significantly lessens manual labor and speeds up decision-making processes, extending from the operational edge to executive boardrooms.
Mark Moffat, CEO of IFS, remarked, "Our remarkable growth demonstrates that customers are ready to move beyond AI theory. They are seeking AI that addresses real problems at scale and are relying on IFS to guide them through the Industrial AI transformation. The direct correlation between our financial performance and AI innovation is clear. As demand accelerates, IFS distinguishes itself due to our industry-specific expertise, contextual intelligence, and steadfast dedication to industrial solutions."
Matthias Heiden, CFO of IFS, added, "Our financial results exemplify the rapid growth and differentiated leadership IFS has attained as an Industrial AI powerhouse. We are grounded in a financial model built on steady recurring revenue, resilient operations, and the agility necessary to scale. We instill these same principles into our offerings to empower customers in creating lasting value. With such a robust foundation, IFS is not just experiencing growth; we are redefining the possibilities for industrial enterprises."
The demand for AI-driven solutions from previous acquisitions—including Copperleaf, Poka, Ultimo, and EmpowerMX—continues to be robust, contributing significantly to IFS's expansion. Additionally, IFS's expansive global network of strategic partners has been essential in supporting its growth and the increase in deal sizes.
Highlights from H1 2025:
Innovation and AI Launches
- Introduced Nexus Black: a tailored accelerator for industrial-grade scalability and security.
- Acquisition of TheLoops: the first agentic AI workforce for mission-critical sectors.
- Released IFS Cloud 25R1: featuring over 200 new AI-driven capabilities.
Market Recognition and Achievements
- IFS's valuation reached EUR 15 billion amid increasing demand for Industrial AI solutions.
- Named the only company recognized as Customers' Choice in the 2025 Gartner Peer Insights Voice of the Customer report for EAM software.
- Ranked #1 in EAM market share for the fourth consecutive year, according to Gartner's Market Share: Enterprise Software, Worldwide, 2024 report.
- Recognized as a leader in two IDC MarketScape 2024-2025 Vendor Assessments.
- Appointed an advisor to the UK Parliamentary Group on AI, reflecting IFS's commitment to leadership in the AI field.
Contact for IFS:
EUROPE / MEA / APJ: Adam Gillbe
IFS, Director of Corporate & Executive Communications
NORTH AMERICA / LATAM: Mairi Morgan
IFS, Director of Corporate & Executive Communications
Frequently Asked Questions
What were the key financial results for IFS in H1 2025?
IFS reported a 30% increase in Annual Recurring Revenue (ARR) and a 37% boost in cloud revenue, showcasing substantial growth.
What innovative products has IFS launched recently?
IFS introduced Nexus Black, an accelerator for industrial-grade scalability, and the first agentic AI workforce through its acquisition of TheLoops.
How does IFS differentiate itself from traditional software vendors?
IFS focuses on the operational core of industrial businesses, providing tailored AI solutions that meet real-world challenges effectively.
What recognition has IFS received in the market?
IFS was named a Customers' Choice in the Gartner Peer Insights report and ranked #1 for EAM market share for the fourth year in a row.
Who can I contact for more information about IFS?
For further inquiries, you can reach out to Adam Gillbe or Mairi Morgan, the directors of corporate and executive communications at IFS.
