IFS—a leader in Industrial AI software—has reported robust FY2025 year-to-date (YTD) results, signaling that industrial AI is moving from hype to hard results. The company’s latest numbers show impressive growth across recurring and cloud revenues, as enterprises double down on AI to optimize operations at scale.
Solid Growth Across the Board
For the first three quarters of FY2025, IFS recorded:
- Annual Recurring Revenue (ARR) up 22% year-over-year
- Cloud Revenue climbing 31% YoY
- Recurring Revenue up 20% YoY, now accounting for 82% of total revenue
While many AI initiatives across industries are still in pilot phases, IFS.ai—the company’s flagship industrial AI platform—is delivering measurable value in production environments. The results are attracting some of the world’s largest industrial players, including ArcelorMittal, Collins Aerospace, Hitachi Energy, Japan Airlines, and TotalEnergies. These customers are not only adopting IFS solutions but expanding their investments—fueling growth in both deal size and recurring revenue.
Industrial AI That Actually Delivers
IFS’s value proposition lies in AI purpose-built for operational complexity—industries that make, move, or maintain critical assets. Unlike general-purpose AI, IFS.ai embeds domain-specific intelligence across manufacturing, energy, and aviation workflows to orchestrate real-time decisions and improve efficiency.
Central to that innovation engine is Nexus Black, IFS’s AI accelerator, which transforms customer challenges into deployable AI solutions in weeks—not months. IFS engineers work directly with clients to build and productize AI tools at unprecedented speed and scale.
Another standout is IFS Loops, the company’s new agentic digital worker framework. These “digital workers” autonomously manage complex workflows across multiple enterprise data sources—whether from IFS systems or other vendors. Early pilots have shown tangible efficiency gains and faster decision-making cycles.
IFS further strengthened its AI stack with the acquisition of 7Bridges in Q3, adding AI-powered logistics and supply chain optimization capabilities to its portfolio.
Leadership Commentary: From AI Talk to Tangible ROI
“Our 22% ARR growth and increasing deal sizes reflect a clear market shift,” said Mark Moffat, CEO of IFS. “Industrial enterprises are done experimenting with AI—they’re deploying it at scale, and they’re choosing IFS because our Industrial AI is purpose-built for their operations.”
Matthias Heiden, CFO, added that the company’s recurring revenue base—now 82% of total revenue—provides both “strong visibility” and funding for ongoing innovation. “As customers realize measurable returns, they’re making larger commitments and expanding faster, strengthening both our business model and competitive position,” he said.
Looking Ahead: Industrial AI Goes Mainstream
IFS’s momentum is set to accelerate into 2026, driven by a thriving partner ecosystem that includes Microsoft, PwC, Siemens, Anthropic, and Boston Dynamics. On November 13, the company will host Industrial X Unleashed in New York, an event designed to showcase how AI, large language models, robotics, and enterprise software are converging to redefine industrial operations.
With measurable results, deep industry expertise, and expanding AI capabilities, IFS is positioning itself as the go-to platform for enterprises that want AI built for the real world—not the lab.
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