Persistent Systems growth
- Persistent Systems reported quarterly results showing 17% year-over-year revenue growth and commentary on AI deflation effects. - The briefing noted an FY27 ambition to reach a $2 billion revenue target and estimated AI-related deflation of 2%–5%. - The market values Persistent at a premium P/E because investors see superior growth versus peers (x.com).
Persistent Systems reported fiscal 2026 revenue up 17.4% year‑over‑year and said it’s on track for a $2 billion annual run‑rate by FY27. (persistent.com) The company disclosed $1,654.4 million in FY26 revenue and $436.0 million in Q4, with an FY26 EBIT margin of about 15.6%. (persistent.com) Shares slipped after the results, falling as much as about 4.7% on the NSE, even as Persistent trades at a materially higher price‑to‑earnings multiple than many peers. (msn.com) Analysts and brokers are flagging industry‑wide “AI deflation” — estimates in recent notes range roughly 2%–5% of revenue compression for traditional services as automation reduces effort needs. (icicidirect.com) Management framed AI as both a headwind on old pricing models and a source of new, higher‑value work, citing its SASVA, iAURA and GenAI Hub platforms as margin supports. (cnbctv18.com) Street reactions were mixed: CLSA kept an Outperform call but cut its target price, while ICICI and others trimmed estimates citing AI‑led deflation and near‑term booking softness. (cnbctv18.com) Persistent extended its revenue growth streak into its 24th consecutive quarter, underscoring multi‑quarter demand for its digital‑engineering and AI services. (persistent.com) Order metrics showed softness: total deal wins fell roughly 10% sequentially to about $600.8 million in the quarter, according to brokerage write‑ups. (cnbctv18.com) CEO Sandeep Kalra reiterated the company’s FY27 $2 billion ambition and noted Q4 as the company’s 24th straight growth quarter — the next checkpoint will be execution against that run‑rate through FY27. (persistent.com)
