OVHcloud‘s latest quarterly numbers tell a fairly modest story on the surface. Revenue hit €289.6 million, up 6.9 percent year over year, nothing that’s going to make headlines on its own. But underneath that total, the French cloud provider’s public cloud segment grew more than 20 percent, and that’s the part actually worth paying attention to.
Public cloud revenue reached €65.6 million for the quarter, outpacing both Private Cloud, which grew a more modest 4 percent, and Webcloud, up just 2 percent. Private Cloud still makes up the bulk of OVHcloud’s business at 60 percent of quarterly revenue, but the growth engine has clearly shifted toward public cloud, driven partly by new VPS offerings and expanded data center availability in Paris and Milan.
Part of that momentum traces back to Europe’s growing appetite for sovereign cloud infrastructure. OVHcloud, along with two other providers, recently won a spot supplying cloud services to European institutions under a contract capped at €180 million over six years. It’s not a massive number by hyperscaler standards, but it gives OVHcloud something tangible to point to as banks, government agencies, and regulated industries increasingly ask whether their data actually needs to leave Europe at all.
The company is also pulling AI deeper into its strategy, expanding an AI lab following its acquisition of Dragon LLM and pursuing a deal to acquire Gladia, a voice AI company, to add speech-to-text capabilities across its services. That puts OVHcloud in the same race as every other infrastructure provider trying to bolt AI onto existing cloud offerings, though the company is betting its edge will come from data locality and compliance rather than trying to outspend hyperscalers on raw AI capacity.
Financially, OVHcloud reaffirmed its full-year targets, including positive free cash flow, a detail that matters given how expensive AI infrastructure has become across the industry. Net revenue retention landed at 102 percent, a modest gain that reflects steady but unspectacular customer spending growth.
None of this turns OVHcloud into a hyperscaler rival overnight. What it does show is a company trying to convert European demand for trusted, locally controlled infrastructure into something that compounds into real growth over time.
