IFS says manufacturers and other industrial organisations are increasingly scaling artificial intelligence across their operations, contributing to strong first-half financial growth as demand for AI-powered operational software continues to expand.
According to IFS, the company recorded 25 per cent year-on-year growth in annual recurring revenue (ARR) during the first half of 2026, alongside 24 per cent growth in cloud revenue. Recurring revenue accounted for 84 per cent of total revenue over the period.
The company attributed the performance to growing adoption of industry-specific AI applications across manufacturing, asset maintenance, supply chain, field service and warehouse operations, with customers seeking to address complex operational challenges through AI-enabled technologies.
IFS said it expanded its Industrial AI portfolio during the first half of the year with several new capabilities, including IFS Nexus Black’s Resolve for AI-assisted field service, IFS Zero for emissions data collection, and the IFS Loops Agentic Platform, which enables organisations to deploy AI-powered digital workers. According to the company, around 60 per cent of agentic transactions on the platform are now fully automated.
“Customers are scaling AI across operations onto the factory floor, into the warehouse, and out in the field,” said Mark Moffat, CEO of IFS.
“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.”
IFS also reported that organisations 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 its software during the first half of 2026 to support operational workflows.
The company said its acquisition of warehouse management software provider Softeon in March 2026 strengthened its supply chain execution capabilities as industrial organisations respond to ongoing supply chain volatility.
During the period, IFS also expanded its Industrial AI ecosystem through partnerships with companies including Siemens, AVEVA and NEC, alongside collaborations with AI providers, research organisations, analysts and systems integrators. The company said these relationships are intended to help customers improve operational decision-making and productivity throughout the asset lifecycle.
Ryan Courson, chief financial officer at IFS, said the results reflected continued customer adoption of AI technologies across industrial operations.
“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,” Courson said.
“These results reinforce the resilience of our business model and our track record of profitable growth.”
IFS also highlighted its recognition as a Leader in the 2026 IDC MarketScape: Worldwide Manufacturing AI-Enabled Asset-Intensive Enterprise Asset Management Applications Vendor Assessment.
Micky North Rizza, Group Vice-President at IDC, said the first half of 2026 reflected broader momentum in the industrial software market.
“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,” Rizza said.
“Growth in recurring revenue and cloud adoption underscores how organisations are prioritising 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.”
Looking ahead, IFS said it expects continued demand for Industrial AI in the second half of 2026, supported by recurring revenue growth and ongoing investment in its platform, with further product developments set to be showcased at its IFS Unleashed event in October.
