Persistent Systems Ltd. share price target

AI-led strategy driving differentiation and deal momentum: The company's AI-first approach, built on engineering hyper productivity, business process optimization and enterprise data readiness, is gaining strong traction across clients. Persistent has built a differentiated ecosystem with 500+ AI agents and partnerships across hyperscalers, strengthening its positioning in next-gen deals. Strong ACV growth of 27.1% YoY and continued large deal wins reflect increasing relevance in AI-led transformation programs. Management's continued investments in AI capabilities and platforms are expected to drive...

Persistent Systems’ outlook is defined by its seamless transition into a premier, AI-led digital engineering powerhouse.

Persistent’s top line came in a tad short of consensus expectations; yet, its Q4 growth outpaced peers. Despite high exposure to product engineering—a segment vulnerable to AI disruption—the company is successfully pivoting to capture AI-led revenue.

We maintain our BUY rating on the stock.

Persistent posted robust results for another quarter with 3.4% q/q cc revenue growth to $436mn aided by a healthy order book (LTM TCV up 14.4% y/y) along with continued large-account mining and resilient growth across major client buckets, with all customer buckets growing at roughly 19% to 21% y/y in FY26.

Steady Growth, Slight Miss on Estimates in Q4 Deal wins impacted by seasonality in Q4 The revenue performance (+3.4% QoQ CC) was below our estimates (+4.3% QoQ CC), attributed to passing productivity benefits to its marquee accounts. Barring this impact, the execution remained strong in terms of winning new business ACV, grew 37.7% YoY in Q4 and 22.7% YoY in FY26. Despite the escalating geo-political tension, management expects growth momentum to continue within all three verticals. The deployment of products and solutions benefits in terms of optimizing resources and...

4QFY26 tad weaker than estimate on both revenue and margins. US$2bn revenue run rate is likely in 4QFY27. Still be a growth leader

Persistent Systems (PSYS) reported 4QFY26 revenue of USD436m (vs. est. USD438m), up 3.2% QoQ in USD terms and 3.4% in CC (est. +3.5%). Adj. EBIT margin stood at 16.3% (est. 16.6%).

Persistent sustained its ‘consistent compounding’ narrative for another quarter with 4.1% q/q and 17.3% y/y CC revenue growth to $423mn aided by a healthy order book along with (LTM TCV up 14.2% y/y) continued deepening of its large-client relationships.

Consistent growth engine with strong deal visibility: Persistent continues to demonstrate a structurally strong growth profile (+4.1% QoQ CC) and robust booking momentum. Rising TCV (US$674.5 mn - up 11% QoQ/13.5% YoY) and ACV (US$501.9 mn - up 12% QoQ/17% YoY) reflects improving revenue visibility, driven by deeper participation in large, strategic client programs. Demand remains healthy across verticals, supported by application and data modernization themes in BFSI and healthcare. The management noted that it remains firmly on track toward its US$2 bn revenue aspiration by FY27,...

Inline revenue. Margin surprise on sale of AI Software licenses. The US$2bn FY27 goal may require an acquisition

Persistent Systems’ (PSYS) strong revenue growth of 4.1% QoQ CC in a furlough quarter (Q3FY26) was aided by an increase in software license sales (up 44% QoQ USD) and healthy growth in services business (+2.6% QoQ USD).

Persistent Systems (PSYS) reported a 3QFY26 revenue of USD422m (vs. est. USD420m), up 4.0% QoQ in USD terms and 4.1% in CC (est. +3.5%). Adj. EBIT margin stood at 16.7% (est. 15.0%).

PSYS’ revenue growth of 4.2% QoQ CC was ahead of our optimistic estimates. Growth was led by the BFSI and technology verticals. Healthcare vertical has improved, post two quarters of muted growth from client-specific offshoring.

AI-Led Transformation for long-term differentiation: Persistent's AI-led transformation through its Sasva platform (filed 20 new patents), enterprise AI readiness offerings, & internal AI deployments is a key differentiator. With 50+ AI agents deployed & partnerships with Anthropic, the company is also embedding AI across delivery, legal, HR, finance, & supply chain. This positions Persistent well to capture next-gen digital transformation opportunities, drive...

2QFY26 performance was strong. Growth leader among the Tier-2. And very consistent. Margins outperformed on lower Software cost

Revenue stood at INR 35,807 Mn, up 7.4% QoQ and 23.6% YoY, outperforming our estimate by ~2.7%, driven by consistent client additions and higher offshore volumes.

We maintain our BUY rating on the stock.

Persistent Systems (PSYS) reported 2QFY26 revenue of USD406m (vs. est. USD404m), up 4.2% QoQ in USD terms and 4.4% in CC (est. +3.5%). EBIT margin stood at 16.3% (est. 15.7%).

Revenue: Persistent Systems Q1FY26 revenue came in at INR 33,336 Mn, up 21.8% YoY (+2.8% QoQ), in-line with our estimates, primarily driven by robust performance in the BFSI segment, with incremental contributions from Software, Hi-Tech, and Emerging Markets verticals, partially offset by softness in healthcare and Life Sciences.