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.

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.