IFS Surges Ahead in H1 2025: 30% ARR Growth and Breakthrough Agentic AI Cement Industrial Leadership

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Compelling industrial AI use cases, strong execution and AI-driven demand fuel global growth

LONDON, July 23, 2025 /PRNewswire/ -- IFS, the leading provider of enterprise cloud and Industrial AI software, today announced record-setting H1 2025 results. The company is rewriting the rules of enterprise software with Industrial AI that acts, learns, and delivers. In H1, IFS outpaced legacy enterprise vendors, driving double-digit growth across all key performance metrics, further validating the strength of IFS's strategy, the scalability of its model, and accelerating momentum as the category leader in Industrial AI.

IFS H1 2025 Key Financial Results:

• Annual Recurring Revenue (ARR): +30% YoY
• Cloud Revenue: +37% YoY
• Recurring Revenue: +24% YoY (now 82% of total revenue)

Unlike traditional, legacy software vendors, IFS is purpose-built for the operational core of industrial businesses, powering the real-world systems that keep the world running. Average customer deal size from new customers continued to grow significantly in the first half of the year, with 130 leading industrial brands choosing to future-proof their growth with IFS in H1, including: Arcelor Mittal, Callaway, Collins Aerospace, Hitachi Energy, Japan Airlines, TotalEnergies.

In addition to continued organic growth, IFS extended its Industrial AI lead with the acquisition of TheLoops, launching the first agentic AI workforce for complex industries. Complementing this, the launch of Nexus Black, IFS's AI innovation accelerator, is already delivering bespoke, scalable solutions that traditional platforms cannot match.

Together, Nexus Black and TheLoops mark a new era for enterprise software, where self-learning AI agents operate in real time inside customer environments, reducing manual effort and accelerating decisions from edge to boardroom.

"Our phenomenal growth proves customers are done with AI theory. They want AI that solves real problems, at scale, and are placing their trust in IFS to lead them through the Industrial AI revolution," said Mark Moffat, CEO of IFS. "The connection between our performance and AI innovation is unmistakable. As demand intensifies, IFS stands apart, thanks to our domain depth, contextual intelligence, and unwavering focus on industry."

Matthias Heiden, CFO of IFS commented: "Our fiscal performance reflects the fast-growth, differentiated Industrial AI leader that IFS has become, with a disciplined financial model rooted in recurring revenue, resilient operations, and scale-ready agility. These same principles are built into our solutions to empower our customers to drive long-term value. With this strong foundation, we're not just growing, we're redefining what's possible for industrial enterprises."

Demand for AI-powered solutions from prior acquisitions – Copperleaf, Poka, Ultimo, P2 and EmpowerMX – remains strong and continues to contribute meaningfully to IFS's growth. IFS's thriving global network of strategic partners also played a key role in enabling continued scaling and deal size growth.

H1 Highlights: 

AI and Innovation

• Launched Nexus Black: bespoke accelerator for industrial-grade scalability and security
• Acquired TheLoops: first agentic AI workforce for mission-critical industries
• Released IFS Cloud 25R1: made 200+ AI-driven capabilities

Market Momentum and Recognition

• EUR 15 billion valuation amid soaring Industrial AI demand
• Only company named Customers' Choice in the 2025 Gartner Peer Insights Voice of the Customer for EAM report
• IFS ranked #1 for EAM for fourth consecutive year, Gartner Market Share: Enterprise Software, Worldwide, 2024 report
• Named a Leader in two IDC MarketScape 2024-2025 Vendor Assessments in two IDC MarketScape 2024-2025 Vendor Assessments
• IFS appointed Advisor to UK Parliamentary Group on AI

IFS Press Contacts:
EUROPE / MEA / APJ: Adam Gillbe
IFS, Director of Corporate & Executive Communications
Email: [email protected]

NORTH AMERICA / LATAM: Mairi Morgan
IFS, Director of Corporate & Executive Communications
Email: [email protected]

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SOURCE IFS