Persistent Systems has announced its financial results for the first quarter of fiscal year 2026, demonstrating strong growth and profitability amid a challenging macroeconomic environment.

Financial Highlights

For Q1 FY26 ended June 30, 2025, Persistent Systems reported:

• Revenue of $389.70 million, up 18.8% year-over-year (YoY) and 3.9% quarter-over-quarter (QoQ)
• EBIT (Earnings Before Interest and Taxes) of ₹5,178.10 million, representing a 15.5% margin
• PAT (Profit After Tax) of ₹4,249.40 million, up 38.7% YoY, with a 12.7% margin

The company's performance marks its 21st consecutive quarter of revenue growth, underlining its consistent execution and resilience in the face of global economic headwinds.

Segment Performance

Persistent Systems' revenue growth was driven by strong performance across all industry segments:

Key Business Highlights

• The order booking for Q1 FY26 stood at $520.80 million in Total Contract Value (TCV) and $385.30 million in Annual Contract Value (ACV).
• The company continued to strengthen its AI-led, platform-driven strategy, focusing on customer value creation and measurable outcomes.
• Persistent Systems was recognized as a Leader in the ISG Provider Lens™ 2025 for Digital Engineering Services and in the Everest Group Talent Readiness for Next-Gen Application Services PEAK Matrix® Assessment 2025.

Leadership Changes

Persistent Systems announced key leadership changes:

1. Yogesh Patgaonkar, Chief People Officer, will retire effective July 31, 2025.
2. Rajiv Naithani will assume the role of Chief People Officer from August 1, 2025, as part of a planned succession.
3. Shimona Chadha joins as the new Chief Marketing Officer to drive global marketing strategy and strengthen brand positioning.

Other Developments

• The company's 35th Annual General Meeting was held on July 21, 2025, where shareholders approved a final dividend of ₹15 per share for FY 2024-25.
• The Board of Directors approved the issuance of 1,350,000 equity shares to the PSPL ESOP Management Trust.
• Persistent Systems was named the fastest-growing IT Services Brand in Brand Finance's India 100 2025 Report.

Sandeep Kalra, Chief Executive Officer and Executive Director of Persistent Systems, commented on the results: "We delivered our 21st sequential quarter of revenue growth, up 3.9% Q-o-Q and 18.8% Y-o-Y, while sustaining operating margins in a challenging macroeconomic environment. This performance reflects the strength of our AI-led, platform-driven strategy, focus on customer value creation, and our ability to unlock measurable outcomes."

As Persistent Systems continues to navigate the evolving technology landscape, its focus on AI-driven innovation and talent development positions the company for sustained growth and market leadership in the coming quarters.

Persistent Systems , a global leader in AI-led, platform-driven Digital Engineering and Enterprise Modernization, has reported strong financial results for the first quarter of fiscal year 2026, demonstrating continued growth and strategic progress.

Q1 FY26 Financial Highlights

Persistent Systems achieved impressive year-over-year growth in key financial metrics:

• Revenue reached $389.70 million, up 18.8% YoY
• EBIT (Earnings Before Interest and Taxes) grew 34.8% YoY to ₹5,178.10 million
• PAT (Profit After Tax) increased 38.7% YoY to ₹4,249.40 million

The company maintained strong profitability with an EBIT margin of 15.5% and a PAT margin of 12.7%.

Strategic Growth Target

During a recent conference call, Persistent Systems outlined its ambitious growth strategy:

• Revenue target of $2 billion by FY27
• Planned annual growth rate of 19-20%
• Commitment to improving operating margins by 200-300 basis points by FY27

The company emphasized a focus on profitable growth to achieve these targets.

Segment Performance

Persistent Systems reported solid performance across its three main industry segments:

Key Business Wins

The company secured several significant deals across various sectors:

• Modernizing a contact center assurance platform for a global leader in network lifecycle automation
• Enhancing a digital banking platform for a global leader in banking and wealth management
• Establishing a software Center of Excellence for a leading life sciences company

Leadership Changes

Persistent Systems announced two key leadership changes:

1. Yogesh Patgaonkar, Chief People Officer, will retire effective July 31, 2025.
2. Rajiv Naithani will assume the role of Chief People Officer from August 1, 2025, focusing on AI-driven talent transformation.

Industry Recognition

The company received several accolades:

• Named the fastest-growing Indian IT Services brand by Brand Finance
• Recognized as a Leader in ISG Provider Lens™ 2025 for Digital Engineering Services
• Cited as a Leader in Everest Group Talent Readiness for Next-Gen Application Services PEAK Matrix® Assessment 2025

Looking Ahead

Sandeep Kalra, CEO and Executive Director of Persistent Systems, commented on the results: "We delivered our 21st sequential quarter of revenue growth, up 3.9% Q-o-Q and 18.8% Y-o-Y, while sustaining operating margins in a challenging macroeconomic environment. This performance reflects the strength of our AI-led, platform-driven strategy, focus on customer value creation, and our ability to unlock measurable outcomes."

As Persistent Systems continues to expand its AI and digital engineering capabilities, the company appears well-positioned to capitalize on the growing demand for digital transformation services and pursue its ambitious growth targets.