Domain name sales at OVHcloud are reaching “record daily volumes, driven in particular by demand linked to vibe coding and AI,” according to the French provider. Vibe coding means building websites and apps by describing them to an AI tool in plain language.

Revenue grew more modestly. Webcloud, the segment that includes domains, web hosting, email and other collaboration services, rose 3.2% like for like in the fiscal year that ended August 31, 2026, to €199.7 million.

Webcloud is the smallest and slowest-growing of OVHcloud’s three segments, at 17.4% of revenue. Group revenue rose 7.2% like for like to €1,145.1 million, led by Public Cloud at 18.9%, and OVHcloud reported its first positive levered free cash flow since its stock market listing. Across the group, it puts net revenue retention at 103%, “driven by low churn.”

Domains and Affordable Entry Plans

OVHcloud’s results presentation lists three highlights for the segment: a “competitive model and affordable entry price,” “accelerated customer acquisition” and domain names “boosted by AI demand.” A chart in the presentation shows domain volumes above the previous year in every month from September to August, with the gap widening from January. The chart has no scale, so the size of the increase is not stated.

The company has been working on the range all year. In the September to November quarter, it noted that its “competitive price positioning strategy is starting to drive results” among the entry-level customers it calls Starters. Between March and May, it launched Webhosting 2027, along with Managed Hosting for WordPress and OVHcloud Video Center. The annual release describes the Webcloud offers as “repositioned to make them accessible to a wider audience.” On OVHcloud’s international website on October 27, the Starter web hosting plan cost $1.89 a month for the first 12 months, renewing at $3.09.

The domain trend echoes what Verisign reported on October 22. Its July to September quarter brought a record 13.1 million new .com and .net registrations, and chief executive Jim Bidzos named “an AI tailwind” among the drivers on the earnings call.

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A Smaller Summer Dip Lifted Fourth-Quarter Growth

OVHcloud’s fiscal year runs from September to August, so its fourth quarter covers June to August. Webcloud grew 6.0% like for like in that quarter, up from 2.0% in the March to May quarter. Revenue still slipped from the previous quarter, as it has in each of the past three years, but by much less: 0.6% this year, against 4.5% in 2025 and 6.3% in 2024. That smaller quarter-on-quarter decline helps explain the stronger year-on-year growth.

Webcloud revenue (€ million)Q1 (Sep-Nov)Q2 (Dec-Feb)Q3 (Mar-May)Q4 (Jun-Aug)Full year
FY202446.748.547.344.3186.7
FY202548.849.249.046.8193.8
FY202649.850.250.049.7199.7
FY2026 like-for-like growth2.3%2.4%2.0%6.0%3.2%

The Lowest Margins of the Three Segments

OVHcloud’s consolidated financial statements show Webcloud with the lowest current EBITDA margin of the three segments:

FY2026 (€ million)Private CloudPublic CloudWebcloud & Other
Revenue690.4255.1199.7
Current EBITDA286.9108.665.0
Current EBITDA margin41.6%42.6%32.5%
Capital expenditure316.375.930.2

Webcloud’s margin edged up from 32.2% the year before. Its capital expenditure rose from €21.9 million to €30.2 million, an increase of about 38%. Current EBITDA, as reported by segment, is a different measure from the adjusted EBITDA of €480.5 million that OVHcloud gives for the group.

Targets for Fiscal 2027

For fiscal 2027, OVHcloud targets like-for-like revenue growth above 10% and an adjusted EBITDA margin above 42.5%, at exchange rates as of September 30. It also expects positive levered free cash flow and a return on capital employed above 9%. Revenue for the September to November quarter is due on January 7, 2027.