Information Technology Services & Digital Transformation
Strategic Profile
The company positions itself as a trusted European alternative to global tech operators, leveraging strengths in digital sovereignty and critical sectors including defense, aeronautics, and public services. Under new CEO Rajesh Krishnamurthy (appointed February 2026), Sopra Steria is ramping up consulting and generative AI capabilities while executing strategic M&A to expand in space systems and cybersecurity.
Cyborg Score Rationale
Sopra Steria demonstrated operational resilience in 2025 with return to organic growth in Q4, 18% net profit growth, and strong free cash flow generation. However, challenging market conditions and cost pressures impacted full-year performance, offset by strategic acquisitions and European digital sovereignty positioning.
Top Insights
Returned to organic growth in Q4 2025 after challenging year; generated €340.9M free cash flow with 63.8% conversion rate from operating profit
Recently appointed Rajesh Krishnamurthy as CEO (Feb 2026) to drive digital transformation and AI-powered growth acceleration
Pursuing exclusive acquisition of Starion and Nexova to create ~€200M space/cybersecurity hub with 1,600 employees; deal expected H1 2026
Trading at attractive valuation (P/E 7.4x 2026E) with proposed €5.30/share dividend (vs €4.65 in 2024), indicating shareholder confidence in cash generation
Named Competitors
Consulting & Systems Integration — Global IT services and consulting
Digital Services — European IT services competitor
Enterprise Solutions — Global IT consulting and systems integration
Recent Developments
(February 2026) Rajesh Krishnamurthy appointed Chief Executive Officer; reported 2025 full-year results with 18% net profit growth