Info-Tech Systems Reports Strong 3Q FY2026 Revenue Growth Across Core Segments

Operational Insights Behind the Robust Revenue Growth

Info-Tech Systems Ltd recently released its 9M FY2026 and 3Q FY2026 business updates, demonstrating strong execution across its core software and training segments. Total revenue for the nine-month period expanded by 20% year-on-year to S$42.6 million, while third-quarter revenue grew 18% year-on-year to S$15.3 million.

While these headline figures highlight robust top-line momentum, the more significant insights lie beneath the high-level performance. A deeper look into the operational update reveals critical shifts in product mix, regional expansion drivers, dual-track AI adoption, and upcoming growth normalization that every investor should understand.

AI Training Is Unexpectedly Supercharging Top Line Growth

The Group’s Services division, operated through Info-Tech Academy, experienced massive expansion during the period. Services revenue surged 82% year-on-year to S$8.6 million in 9M FY2026, up from S$4.7 million in 9M FY2025. This exceptional performance lifted the Services segment’s share of total Group revenue from 13% to 20%.

Enterprise demand for AI-related courses drove over 85% of Academy registrations, led by practical offerings like Generative AI for HR, ChatGPT, Gemini, and Claude Agent. This enterprise demand was heavily catalyzed by Singapore government funding support, including up to 70% course funding alongside the S$10,000 SkillsFuture Enterprise Credit (SFEC). These subsidies significantly reduced upskilling costs for small and medium enterprises accelerating digital adoption.

This trajectory highlights Info-Tech’s dual-track AI strategy, which pairs educational upskilling with AI features embedded directly into its software core (HRMS, Accounting, and CRM) to automate routine work. While high-margin recurring SaaS revenues provide the steady valuation multiple bedrock, high-growth Services drive immediate top-line expansion.

Info-Tech’s strategic execution is further highlighted by its expansion into neighboring markets under proven framework models. Highlighting this momentum, Chief Executive Officer Mr. Babu Dilip noted the strategic direction for the division:

“Info-Tech Academy has emerged as an important, sustainable growth engine, and our new Academy launch in Malaysia under the HRD Corp framework will drive further growth for our AI-related courses. We believe this expansion will unlock valuable new market opportunities and provide an additional, resilient revenue stream.”

Malaysia Is Escalating Into the Primary SaaS Expansion Engine

Geographically, Singapore continues to serve as Info-Tech’s largest market, generating S$30.5 million in 9M FY2026 revenue with a 20% year-on-year increase. However, Malaysia has emerged as the primary growth engine for core subscriptions. Total revenue in Malaysia rose 24% year-on-year to S$9.4 million, powered by an impressive 26% growth in subscription revenue.

The strategic significance of Malaysia is set to escalate further with the planned launch of Info-Tech Academy before the end of FY2026. Official approval from Malaysia’s Human Resource Development Corporation (HRD Corp) enables eligible levy-paying employers to seek financial assistance for workforce upskilling. This regulatory approval establishes an immediate cross-selling pipeline into Info-Tech’s existing Malaysian customer base.

Sticky Core SaaS Subscriptions Provide Financial Stability

At the core of Info-Tech’s financial model is a highly predictable, compounding SaaS business. Recurring subscription revenue increased 11% year-on-year to S$32.2 million in 9M FY2026, representing 76% of total Group revenue. This underlying subscription base ensures strong revenue visibility across market cycles and anchors the company’s baseline valuation.

Info-Tech’s operational moat is reflected in its customer retention rate maintained above 90%, supported by over 1.1 million monthly active users across more than 28,000 business clients. Ecosystem stickiness is continuously enhanced through cross-selling integrated solutions across the platform. For instance, adoption of Info-Tech’s Accounting software grew to 2,100 customers in 3Q FY2026, up from 1,700 at the end of FY2025.

This consistent core expansion reinforces overall corporate financial health while funding regional initiatives. The table below summarizes the revenue breakdown across segments and geographies for 9M FY2026 compared to 9M FY2025:

A Non-Recurring Comparison Surge Creates a Fourth Quarter Watchout

Despite impressive nine-month results, investors must prepare for growth rate normalization in the fourth quarter. In 4Q FY2025, Services revenue experienced an exceptional, one-time surge in Singapore prior to the expiration of the S$500 SkillsFuture Credit top-up.

Management has explicitly noted that this exceptional comparison surge will not recur in 4Q FY2026. Consequently, training revenue growth is expected to normalize, leading to stable headline revenue growth for full-year FY2026. Investors should look past this short-term comparison baseline and focus on the steady double-digit compounding of the core SaaS subscription business.

What Investors Should Watch Next

Info-Tech Systems presents a balanced growth story grounded in sticky, recurring SaaS cash flows paired with high-upside training adjacencies. As the company moves into the final quarter of FY2026 and beyond, execution on its regional expansion will dictate long-term shareholder value creation.

Investors should monitor three key catalysts in upcoming updates:

1. Execution and revenue contribution of the newly launched Info-Tech Academy in Malaysia under HRD Corp.
2. Continued expansion of cross-sell adoption among Accounting and CRM users.
3. Efficient allocation of their balance sheet, leveraging their debt-free position and cash reserves to sustain long-term regional growth.

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