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.

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

Financial Highlights

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

Business Performance

The company reported Total Contract Value (TCV) bookings of $520.80 million for Q1 FY26, with Annual Contract Value (ACV) bookings of $385.30 million. This strong performance reflects Persistent's success in securing new deals and expanding existing client relationships.

Segment-wise Revenue

Persistent's revenue breakdown by industry segments for Q1 FY26:

Key Client Wins

The company secured several significant deals across its core industry segments:

• Modernizing a contact center assurance platform for a global network lifecycle automation leader
• Enhancing a debt issuance system for a leading US-based federal corporation
• Establishing a software Center of Excellence for a life sciences and scientific instrumentation company

Strategic Initiatives

Persistent continues to focus on its AI-led, platform-driven services strategy, with emphasis on:

1. Scaling proprietary IPs and setting new benchmarks in AI-driven innovation
2. Unlocking business value through data, engineering, and ecosystems
3. Building Agentic-first solutions leveraging leading industry platforms

Leadership Changes

• Yogesh Patgaonkar, Chief People Officer, will retire effective July 31, 2025
• Rajiv Naithani will assume the role of Chief People Officer from August 1, 2025
• Shimona Chadha joins as the new Chief Marketing Officer

Industry Recognition

Persistent Systems received several accolades during the quarter:

• 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

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 innovate and expand its service offerings, the company remains well-positioned to capitalize on the growing demand for digital engineering and enterprise modernization services in the global market.