Market-leading\u00a0ARR growth, margin expansion and net retention underscore accelerating adoption of purpose-built Industrial AI<\/p>\n
Key highlights FY2025<\/p>\n
Annual Recurring Revenue (ARR): +23% YoY\u00a0<\/p>\n
Cloud Revenue: +30% YoY<\/p>\n
Recurring Revenue: 83% of total revenue<\/p>\n
Net Retention Rate (NRR): 114%<\/p>\n
Operating Margin Expansion: +5pp YoY<\/p>\n
IFS, the leading provider of Industrial AI software, today announced its financial results for the fiscal year ending December 31, 2025, delivering 23% year-on-year ARR growth, strong margin expansion and increasing customer expansion as Industrial AI moves decisively from experimentation to scaled operational deployment.<\/p>\n
IFS\u2019s FY2025 performance reflects a fundamental shift in the industrial software market. The world\u2019s largest asset-intensive and service-centric enterprises are no longer asking whether AI works \u2013 they are scaling solutions that deliver measurable outcomes across manufacturing, asset maintenance, supply chain, field service and warehouse operations.<\/p>\n
Industrial AI delivering real-world outcomes at scale<\/p>\n
IFS\u2019s Industrial AI platform is delivering production-grade results where generic AI approaches fall short. Customers typically begin with targeted operational use cases, achieve rapid\u00a0ROI, and then expand deployments across additional sites, assets, and business units.<\/p>\n
This expansion dynamic drove:<\/p>\n
114% Net Retention Rate,<\/p>\n
14% YoY growth in average deal size, and<\/p>\n
Continued improvement in customer lifetime value, supported by an 87% CSAT score.<\/p>\n
IFS\u2019s innovation velocity enables customers to realize value quickly:<\/p>\n
IFS Nexus Black\u00a0delivers breakthrough AI capabilities within weeks by turning customer challenges into productized innovation.<\/p>\n
IFS Agent Studio\u00a0allows enterprises to create and deploy Agentic Digital Workers, embedding automation and intelligence deep into mission-critical operations.<\/p>\n
Strategic partnerships with leading innovators including\u00a0Anthropic, Microsoft, Siemens and Boston Dynamics further accelerate progress toward autonomous operations.<\/p>\n
This differentiated approach is why leading companies are scaling their Industrial AI journeys with IFS. Major FY2025 customer wins and expansions include:\u00a0ArcelorMittal, Cadillac Formula 1 Team, Callaway, Collins Aerospace, Dixstone, Hitachi Energy, Homeserve, Japan Airlines, Tampa Electric (TECO), TotalEnergies, Westinghouse, and William Grant & Sons.<\/p>\n
Strategic acquisitions expand Industrial AI leadership<\/p>\n
During 2025, IFS significantly expanded its Industrial AI capabilities and market reach through targeted acquisitions:<\/p>\n
TheLoops\u00a0\u2013 delivering the first Agentic AI workforce purpose-built for mission-critical industries, with early deployments demonstrating the potential to unlock up to 10\u00d7 workforce capacity.<\/p>\n
7Bridges\u00a0\u2013 adding AI-driven supply chain and transportation optimization, with early customers achieving 8% transport cost reductions and 90% automation of data management tasks.<\/p>\n
Softeon\u00a0(expected to close in Q1 2026) \u2013 extending Industrial AI into warehouse management and robotics integration, enabling end-to-end supply chain orchestration.<\/p>\n
Previously acquired businesses including\u00a0Copperleaf, Poka and Ultimo also contributed materially to FY2025 growth and differentiation.<\/p>\n
Profitable growth, disciplined execution<\/p>\n
IFS combined strong growth with improved profitability in FY2025. Operating margin expanded by 5 percentage points year-on-year, reflecting disciplined execution, increasing scale benefits and a growing mix of high-quality recurring revenue.\u00a0<\/p>\n
Mark Moffat, Chief Executive Officer, IFS, said: \u201cFY2025 was the year Industrial AI crossed the chasm. Enterprises have moved beyond pilots and are scaling AI across the operations that matter most. Customers are choosing IFS because our technology is purpose-built for industrial complexity and delivers outcomes at scale \u2013 as customers see ROI, they expand faster and commit more deeply. IFS\u2019s growth is double that of peers when compared to market growth figures published by respected industry analysts*. We\u2019re accelerating as we enter 2026, and the gap is widening.\u201d \u00a0<\/p>\n
Matthias Heiden, Chief Financial Officer, IFS, added: \u201cOur results demonstrate the quality of IFS\u2019s growth. ARR increased 23%, NRR reached 114%, and operating margin expanded by 5 percentage points year-on-year. With 83% of revenue now recurring, we have strong visibility and a resilient financial foundation to continue investing in innovation while maintaining profitability.\u201d<\/p>\n
Market recognition and outlook<\/p>\n
IFS\u2019s leadership continues to be recognized by industry analysts, including multiple\u00a0Gartner Peer Insights Customers\u2019 Choice\u00a0awards and leadership positions in\u00a0Gartner Magic Quadrants and IDC MarketScapes\u00a0across asset management, field service, and ERP.\u00a0<\/p>\n
Looking ahead, IFS will build on its FY2025 momentum by embedding Industrial AI more deeply into day-to-day operations \u2013 from warehouses and supply chains to field service and asset maintenance \u2013 helping customers unlock faster, more predictable outcomes at scale.<\/p>\n
Micky North Rizza, Group Vice-President at IDC, said: \u201cIFS\u2019s FY2025 results underscore a broader inflection point in the industrial software market, where AI is moving decisively from experimentation to scaled, operational deployment. The combination of strong recurring revenue growth, expanding cloud adoption, and targeted acquisitions signals that industrial enterprises are prioritizing purpose-built platforms that can deliver measurable outcomes across asset-intensive and service-centric operations. This positions IFS well as organizations seek resilient, industry-specific AI capabilities rather than generic enterprise solutions.\u201d<\/p>\n
*Gartner Market Share Analysis:\u00a0ERP Software, Worldwide, 2024 (published June 2025)The post IFS Delivers Exceptional FY2025 Growth as Industrial AI Scales first appeared on AI-Tech Park.<\/p>\n","protected":false},"excerpt":{"rendered":"
Market-leading\u00a0ARR growth, margin expansion and net retention underscore accelerating adoption of purpose-built Industrial AI Key highlights FY2025 IFS, the leading provider of Industrial AI software, today announced its financial results for the fiscal year ending December 31, 2025, delivering 23% year-on-year ARR growth, strong margin expansion and increasing customer expansion…<\/p>\n
The post IFS Delivers Exceptional FY2025 Growth as Industrial AI Scales<\/a> first appeared on AI-Tech Park<\/a>.<\/p>\n<\/div>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-container-style":"default","site-container-layout":"default","site-sidebar-layout":"default","disable-article-header":"default","disable-site-header":"default","disable-site-footer":"default","disable-content-area-spacing":"default","footnotes":""},"categories":[4,1],"tags":[3],"class_list":["post-838","post","type-post","status-publish","format-standard","hentry","category-ai","category-ai-and-ml","tag-ai"],"yoast_head":"\n