IFS Delivers 22% ARR Growth as Industrial AI moves from Promise to Performance
Global enterprises scale IFS's Industrial AI across mission-critical operations, driving larger deal sizes and accelerating expansion
LONDON, Oct. 28, 2025 /PRNewswire/ -- IFS, the leading provider of Industrial AI software, today announced its FY2025 Year-to-Date (YTD) financial results, demonstrating sustained profitable growth, as the world's largest industrial enterprises move from AI experimentation to deployment across their most critical operations.
Q3 FY2025 YTD Financial Highlights
- Annual Recurring Revenue (ARR): +22% YoY
- Cloud Revenue: +31% YoY
- Recurring Revenue: +20% YoY, now representing 82% of total revenue
Unlike many AI projects that are yet to achieve real impact, IFS.ai is delivering meaningful and measurable outcomes for customers. This is why many of the world's largest industrial companies are choosing IFS.ai, including: Arcelor Mittal, Boralex, Callaway, Collins Aerospace, Dixstone, Hitachi Energy, Japan Airlines, OFI, TotalEnergies and Westinghouse. These customers are increasing their investments in IFS, driving growth in recurring revenue, deal sizes and customer expansion.
Why Enterprise Leaders Are Choosing IFS: Industrial AI Delivering in the Real World
IFS's Industrial AI capabilities are purpose-built for the operational complexity of industries that manufacture goods, maintain critical assets, and manage service-intensive operations. This domain expertise, combined with cutting-edge AI innovation, enables IFS to deliver outcomes that traditional vendors cannot match.
- IFS.ai, embedded across IFS solutions, delivers industry-specific intelligence that orchestrates operational complexity, optimizes real-time decision-making, and transforms efficiency at scale; contextual insights that generic AI simply cannot provide.
- Nexus Black, IFS's AI innovation accelerator, is already delivering breakthrough AI products and measurable customer results within weeks. Forward-deployed engineers turn customer challenges into AI solutions. IFS is differentiated as these AI solutions are productised at unprecedented speed and scale.
- IFS Loops agentic Digital Workers autonomously manage complex workflows that previously required extensive manual intervention, operating seamlessly across any enterprise data source, be it IFS or any other vendor. Early deployments are demonstrating significant efficiency gains and faster decision-making.
- IFS's Q3 acquisition of 7Bridges adds advanced AI-driven supply chain, logistics, and transportation optimization capabilities, further extending IFS's Industrial AI leadership.
Mark Moffat, CEO of IFS, commented: "Our 22% ARR growth and increase in average deal size is driven by our AI investments and reflects a clear market shift: the world's largest industrial enterprises are done experimenting with AI: they're deploying it at scale, and they're choosing IFS to co-innovate with them.
"They're choosing us because Industrial AI purpose-built for their operations delivers outcomes they can measure and scale. That's only possible because of our deep industry expertise that has enabled IFS to stand out in asset and service management. That proven value drives expansion. As they see returns, they invest more, and that dynamic is accelerating."
Matthias Heiden, CFO of IFS, said: "These results demonstrate disciplined execution. Our recurring revenue base at 82% of total revenue provides strong visibility and funds continued innovation. As customers realize measurable returns, they're making larger commitments and expanding faster, strengthening both our business model and competitive position."
Momentum Accelerating Into 2026
IFS's ability to create customer impact continues expanding through strategic partnerships and relentless innovation. The company's thriving global partner ecosystem played a crucial role in enabling continued scaling and deal size growth throughout FY2025 YTD.
On November 13 in New York, IFS will host Industrial X Unleashed, uniting AI leaders including Anthropic, Boston Dynamics, Microsoft, PwC, and Siemens to showcase breakthrough Industrial AI applications. The event will feature live demonstrations of how AI, large language models, robotics, and enterprise software are transforming operations across the world's most critical industries.
Highlights
- Appointed Kriti Sharma as CEO of Nexus Black to lead next generation AI innovation
- Acquired 7Bridges to transform supply chains with Industrial AI
- Established partnership with Climatiq to integrate real-time sustainability data into IFS Cloud
- Acquired TheLoops: first agentic AI workforce for mission-critical industries
- Named Customers' Choice in the 2025 Gartner Peer Insights Voice of the Customer for Cloud ERP
IFS Press Contacts:
EUROPE / MEA / APJ: Adam Gillbe
IFS, Director of Corporate & Executive Communications
Email: adam.gillbe@ifs.com
NORTH AMERICA / LATAM: Mairi Morgan
IFS, Director of Corporate & Executive Communications
Email: mairi.morgan@ifs.com
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