Total Contract Value (TCV) Bookings
$600.8M
-23% QoQ
Sequential moderation due to normal seasonality; Q3 typically sees peak renewals.
PERSISTENTSYSTEMS
Information Technology
2026-04-??
Persistent Systems Ltd — Q4 FY26
Persistent Systems delivered a strong Q4 FY26 with revenue of $436M (16.2% YoY) and PAT growth of 33.7% YoY to ₹5,292.6M.
✓ Verified against BSE filing
2-Min Summary
✦ AI-Generated from Full Transcript
Persistent Systems delivered a strong Q4 FY26 with revenue of $436M (16.2% YoY) and PAT growth of 33.7% YoY to ₹5,292.6M. EBIT margin expanded 190bps QoQ to 16.3%, driven by operational efficiencies and favorable currency. BFSI vertical led with 24.4% YoY growth, reaching a $600M annualized run rate. The company reported TCV bookings of $600.8M, including a $150M+ deal with a Japanese industrial tech leader. Management reiterated confidence in reaching a $2B revenue run rate by Q4 FY27, with margin aspiration of 16-17%. AI adoption is accelerating, particularly in tech and BFSI, though enterprise-scale deployment remains slower in regulated sectors. Key risk: prolonged geopolitical tensions could impact macro demand and delay client spending decisions.
Key Numbers
Annual Contract Value (ACV) from New Bookings
$272.7M
N/A
Healthy new business ACV, contributing to future revenue conversion.
BFSI Vertical Revenue Growth
24.4%
+24.4% YoY
BFSI annualized run rate reached $600M, driven by product engineering and data modernization.
Headcount
27,752
+791 QoQ
Net addition of 791 employees; utilization flat at 88%, attrition improved to 13%.
Management Guidance
$2B revenue run rate by Q4 FY27
Management reiterated confidence in achieving a $2B annualized revenue run rate by the end of FY27, plus or minus a quarter.
Management guidance revenueEBIT margin aspiration of 16-17%
Management aspires to maintain EBIT margins in the 16-17% range, with growth and investment as higher priorities.
Management guidance marginsAI investor day in early June 2026
Persistent plans to host an AI investor day in Pune in early June to showcase AI capabilities, partnerships, and customer case studies.
Management guidance ai_strategyKey Risks
Geopolitical tensions and macro uncertainty
Prolonged Middle East conflict could keep oil prices high, fueling inflation and impacting IT spending across the sector.
high · management_commentarySlower enterprise AI adoption in regulated industries
Pilot-to-enterprise-scale AI adoption is slower in BFSI and healthcare due to regulatory hurdles, potentially limiting near-term revenue upside.
medium · management_commentaryCannibalization from AI-driven SDLC compression
Rapid AI tool advancements may compress software development life cycles, reducing billable hours in tech verticals.
medium · analyst_questionEurope revenue decline
Europe revenue declined 1.8% sequentially; management acknowledged the need to double down but did not provide a clear recovery timeline.
medium · data_observationNotable Quotes
We are increasingly being brought in as a credible challenger to tier one outsourcing firms by our customers and prospect.
Our aspiration continues to be in the 16 to 17% range. But remember in this environment our first priority is growth.
We are a very very small company at $1.7 billion roughly... there is enough new outsourcing that may happen from these tech companies and much more than that there will be market share rotation.
Frequently Asked Questions
What was Persistent Systems's revenue in Q4 FY26?
Persistent Systems reported revenue of ₹4,056 Cr in Q4 FY26, representing a +25.1% change compared to the same quarter last year.
What guidance did Persistent Systems management give for FY27?
$2B revenue run rate by Q4 FY27: Management reiterated confidence in achieving a $2B annualized revenue run rate by the end of FY27, plus or minus a quarter. EBIT margin aspiration of 16-17%: Management aspires to maintain EBIT margins in the 16-17% range, with growth and investment as higher priorities. AI investor day in early June 2026: Persistent plans to host an AI investor day in Pune in early June to showcase AI capabilities, partnerships, and customer case studies.
What are the key risks for Persistent Systems in FY27?
Key risks include Geopolitical tensions and macro uncertainty — Prolonged Middle East conflict could keep oil prices high, fueling inflation and impacting IT spending across the sector.; Slower enterprise AI adoption in regulated industries — Pilot-to-enterprise-scale AI adoption is slower in BFSI and healthcare due to regulatory hurdles, potentially limiting near-term revenue upside.; Cannibalization from AI-driven SDLC compression — Rapid AI tool advancements may compress software development life cycles, reducing billable hours in tech verticals.; Europe revenue decline — Europe revenue declined 1.8% sequentially; management acknowledged the need to double down but did not provide a clear recovery timeline..
Did Persistent Systems meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Persistent Systems Q4 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary verified against official BSE/NSE filings.