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Octave reports first results as an independent company and names Bechtel and Fluor in AI programme
The former Hexagon software business reported ARR of $1,143 million and launched a co-innovation programme for agentic AI workflows.
Octave, the software company spun off from Hexagon in May, reported second-quarter 2026 results on 12 August 2026. Total revenue was $398 million, down 4% year over year as reported and down 1% on an organic constant-currency basis, while recurring revenue rose 6% to $283 million.
Annualized recurring revenue reached $1,143 million, up 7% from $1,066 million a year earlier. Chief executive Mattias Stenberg cited SaaS revenue growth of 21% and said recurring revenue and ARR were better indicators of performance than reported revenue because of the company's shift in business model.
In the same release, Octave said it launched Octave CoLabs in July 2026, a programme that pairs its product and technical leaders with customer teams to build agentic AI workflows on the customers' own operational data. The initial participants are Bechtel and Fluor.
The deliberate shift in our business model means recurring revenue growth and ARR are the better indicators of underlying performance than reported total revenue.
Sources
- Octave Announces Second Quarter 2026 Financial ResultsOctave (via MFN) · 12 August 2026 · accessed 23 October 2026