Persistent Systems , a global leader in digital engineering services, has reported a strong start to fiscal year 2026 with impressive revenue growth and continued profitability in its first quarter results.

Financial Highlights

The company delivered revenue of $389.70 million for Q1 FY26, marking an 18.8% year-on-year growth and a 3.9% quarter-on-quarter increase. This performance represents Persistent's 21st consecutive quarter of growth, showcasing the company's consistent expansion trajectory.

Profitability remained robust, with EBIT margin standing at 15.5% and profit after tax margin at 12.7%. The company's Total Contract Value (TCV) for the quarter was $520.80 million, with new bookings contributing $337.00 million.

Sector-wise Performance

Persistent Systems witnessed growth across its key verticals:

• Banking, Financial Services, and Insurance (BFSI) led the growth at 30.7% year-on-year
• Software and Hi-tech sector grew by 14.1%
• Healthcare and Life Sciences increased by 12.4%

Strategic Initiatives and Future Outlook

The company launched SASVA 3.0, an AI-powered digital engineering platform, reinforcing its commitment to innovation and technological advancement. Persistent Systems maintains its target of achieving $2 billion in revenue by FY27, demonstrating confidence in its growth strategy.

Operational Updates

In response to market uncertainties, management has postponed annual wage hikes by a quarter. Despite this, the company continued to expand its workforce, adding 746 employees quarter-on-quarter, bringing the total headcount to 25,314.

Management Commentary

Sandeep Kalra, Executive Director and CEO, commented on the results: "We are happy with our performance in Q1 FY26 despite the increased caution among our customers due to macroeconomic and geopolitical uncertainties. We'll continue to strengthen our AI capabilities as well as our sales channels and proactively engage with our customers while striving for top-quartile growth in our sector."

Persistent Systems' strong Q1 performance, coupled with its strategic focus on AI and digital engineering, positions the company well for continued growth in the evolving tech landscape. The company's ability to maintain growth momentum amidst market uncertainties underscores its resilience and adaptability in the dynamic IT services sector.

Persistent Systems , a leading technology services company, has reported robust financial results for the first quarter of fiscal year 2026, marking its 21st consecutive quarter of growth. The company's CEO, Sandeep Kalra, expressed optimism about the US market demand recovery and resolution of tariff uncertainties in the coming quarters.

Financial Highlights

Market Performance and Outlook

Sandeep Kalra, CEO of Persistent Systems, anticipates that the US market demand recovery and tariff uncertainties will settle within the next three quarters. He cited the upcoming US elections as a potential stabilizing factor for the market.

Segment Performance

BFSI Vertical

Showed strong performance, particularly in North America.

European Market

Contributed 8.5-9% of revenues, with an impressive 37.50% year-on-year growth.

Healthcare Segment

Experienced a 2.00% decline due to US funding cuts to university research and Medicare/Medicaid pressures. However, the CEO expects a recovery in this sector soon.

Domestic Market

Contributed 18.30% to the company's revenues.

Stock Performance

Despite the strong financial results, Persistent Systems' shares closed 7.68% lower at Rs 5,175.00 on the day of the announcement.

Corporate Governance

In compliance with SEBI regulations, Persistent Systems has published its audited financial results for the quarter ended June 30, 2025, in major newspapers including Financial Express (English, all editions) and Loksatta (Marathi, Pune edition). This move demonstrates the company's commitment to transparency and adherence to regulatory requirements.

The company continues to navigate global market challenges while maintaining its growth trajectory. With a positive outlook on the US market recovery and a strong order book, Persistent Systems appears well-positioned for the upcoming quarters, despite the recent dip in share price.