IFS Reports Strong H1 2026 Growth as Customers Scale Industrial AI Adoption

H1 2026 highlights

• Annual Recurring Revenue (ARR): 25% YoY growth
• Cloud Revenue: 24% YoY growth
• Recurring Revenue Mix: 84% of total revenue

LONDON, England, July 28, 2026 /PRNewswire/ -- IFS, the leading provider of Industrial AI software, delivered 25% year-on-year ARR growth in H1 2026, demonstrating customers increasingly adopting and scaling Industrial AI across their operations. The results reflect strong revenue growth, customer expansion, and rising demand for AI-powered solutions that deliver measurable outcomes.

Increased adoption of industry-specific AI use cases is a key driver of IFS's continued growth, as more industrial organizations seek to apply AI to complex operational challenges across manufacturing, asset maintenance, supply chain, field service and warehouse operations. IFS is helping to deploy AI in real-world operational environments, generating tangible improvements in productivity, efficiency, and decision-making.

Innovation driving customer outcomes

IFS expanded its Industrial AI capabilities during H1 2026, including: 

• IFS Nexus Black's Resolve: Transforms field service operations globally using AI to predict faults and reduce downtime, enabling busy technicians to resolve issues faster.
• IFS Zero: Reduces emissions data collection effort by up to 30%.
• IFS Loops Agentic Platform: Enables enterprises to create and deploy AI-powered Digital Workers, with 60% of agentic transactions fully automated. 

Leading industrial organizations including Coca-Cola, China Airlines, Drydocks World, First Solar, Flynn Canada, JVCKENWOOD, Kodiak Gas Services, Miele, ShinMaywa Industries, The Waldinger Corporation and William Grant & Sons selected IFS in H1 2026 to support critical operational workflows.

Strengthening supply chain execution capabilities

The March 2026 acquisition of Softeon enhanced IFS's warehouse management and supply chain execution proposition at a critical time, as industrial organizations face increased supply chain volatility.

Expanding the Industrial AI ecosystem

IFS is building an interconnected Industrial AI ecosystem spanning industrial leaders, technology innovators,  systems integrators, analysts, and research organizations. Strategic partnerships with Siemens, AVEVA, and NEC link engineering, operational, and enterprise intelligence. Collaborations with frontier AI providers, specialist partners, MIT CISR, and systems integrators accelerate cutting-edge capability into the platform.

These relationships enable customers to move beyond accessing asset data, to acting on it – making sharper decisions and driving stronger productivity, greater resilience, and better returns across the asset lifecycle.

Mark Moffat, CEO of IFS, said: "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. Our H1 results reflect the market inflection point we're now seeing."

Ryan Courson, Chief Financial Officer of IFS, said: "H1 2026 demonstrates strong execution across all lines of business. 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."

Continued industry recognition reinforces IFS leadership

IFS was recognized as a Leader in the 2026 IDC MarketScape: Worldwide Manufacturing AI-Enabled Asset-Intensive Enterprise Asset Management Applications Vendor Assessment (#US54250726, February 2026).

Micky North Rizza, Group Vice-President at IDC: "The first half of 2026 highlights accelerating momentum in the industrial software market, with AI becoming embedded in operational workflows rather than isolated use cases. Growth in recurring revenue and cloud adoption underscores how organizations are prioritizing platforms capable of supporting complex, asset-intensive environments. This positions IFS strongly as enterprises look to scale AI-driven outcomes in a disciplined, value-focused way."

Positioned for sustained progress in H2 2026

IFS enters H2 2026 well positioned for sustained growth, with continued demand for Industrial AI, strong recurring revenue performance, and ongoing platform investment. The company will showcase its latest innovations at IFS Unleashed(Opens in a new tab) in October 2026.

This information was brought to you by Cision http://news.cision.com

CONTACT:

IFS Press Contacts:
EUROPE / MEA / APJ: Adam Gillbe
IFS, Director of Corporate & Executive Communications
Email: adam.gillbe@ifs.com(Opens in a new tab)

NORTH AMERICA / LATAM: Mairi Morgan
IFS, Director of Corporate & Executive Communications
Email: mairi.morgan@ifs.com(Opens in a new tab)