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Historic Cloud Revenue Breakthrough
Sectra's recurring cloud revenue exceeded one billion SEK for the first time over a twelve-month period.Sales and Operating Profit Increase
Net sales rose by 25.8 percent and operating profit increased by 60.9 percent during the quarter.Decrease in incoming orders
Contracted order intake fell by 46.6 percent but remained above annual turnover in the long term.Business Model Shift to Cloud Services
Sectra is shifting focus from traditional software to cloud-based services with recurring revenue.Sectra's recurring revenue from cloud services has exceeded SEK 1 billion for the first time, calculated over twelve months. During the first quarter, the Swedish IT and cybersecurity group's sales increased by 25.8 percent and operating profit by 60.9 percent. At the same time, order intake decreased sharply compared to the previous year.
Sectra continues the transition from traditional software sales to cloud-based services and recurring revenue.
During the period May to July 2026, the Group's net sales increased to SEK 963 million, compared to SEK 766 million in the corresponding period last year. This corresponds to growth of 25.8 percent.
Recurring revenue increased by 31.7 percent to SEK 723 million, accounting for around three-quarters of the quarter's revenue.
Cloud revenue increased by 75 percent
Recurring revenue from cloud services, which Sectra reports under the Cloud Recurring Revenue metric, increased by 75.3 percent to SEK 315 million during the quarter.
Measured over the last twelve-month period, these revenues exceeded one billion kronor for the first time.
The development reflects Sectra's long-term move towards cloud-delivered services in medical imaging and other mission-critical systems.
For customers, the model means that software, operations and underlying infrastructure are increasingly delivered as a seamless service. For Sectra, it provides smoother revenue streams, but at the same time requires continued investments in security, personnel, technical capacity and service delivery.
Operating profit rose by 61 percent
Operating profit increased from SEK 119 to 191 million, an increase of 60.9 percent.
The operating margin improved from 15.5 to 19.8 percent. Profit for the period amounted to SEK 158 million, compared to SEK 103 million a year earlier.
Cash flow from operating activities, however, decreased from SEK 118 million to SEK 3 million. Sectra explains the change primarily with more capital tied up in short-term receivables and the settlement of debts.
Order intake decreased sharply
Contracted order intake fell by 46.6 percent to SEK 699 million. Of this, SEK 598 million consisted of guaranteed orders.
The decline needs to be seen in relation to the fact that Sectra's large customer contracts often run for a long time and can create significant variations between individual quarters. The company states that the contracted order intake during the last twelve-month period is still well above the group's annual turnover.
Of the quarter's guaranteed order intake, 22.2 percent was recognized as revenue during the period. Sectra estimates that a further 30 to 40 percent will be recognized as revenue within twelve months of the end of the quarter.
Order intake shows future business volume, but should not be equated with already reported sales or guaranteed results.
The cloud model is changing Sectra's business
Sectra delivers systems for medical imaging and secure communication. The company's customers include healthcare organizations, government agencies and defense actors, where the requirements for information security, availability and regulatory compliance are high.
The increase in recurring cloud revenue shows that more customers are using the company's solutions through ongoing service agreements instead of traditional licensing models.
For Nordic IT managers and security officers, this development raises questions about data storage, jurisdiction, access control, continuity and vendor lock-in. These issues become particularly important when sensitive medical data or classified information is processed in cloud-based environments.
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