#USA #financial results #Persistent Systems #revenue growth #Santa Clara, California

Persistent Systems Reports Impressive Growth in Q2 FY26

Persistent Systems, a prominent global player in digital engineering solutions, revealed its audited financial results for the second quarter of fiscal year 2026. The company has achieved a remarkable revenue of $406.2 million, showcasing a significant year-on-year growth of 17.6%. This growth is particularly noteworthy as it marks the 22nd consecutive quarter of revenue increase for the company.

Financial Highlights

For the quarter ending September 30, 2025, several key metrics highlight Persistent’s financial performance:

• - Revenue: $406.2 million, up 4.2% quarter-on-quarter and 17.6% year-on-year.
• - Operating Margin: 16.3%, representing a growth of 43.7% year-on-year.
• - Earnings Continued to Rise: The profit before tax reached 6,168.3 million INR, highlighting a strong 42% year-on-year growth.
• - Net Profit: Improved to 4,714.7 million INR, marking a 45.1% increase compared to the last year.

Strategic Initiatives Driving Growth

The impressive financial performance can be attributed to Persistent’s strong commitment to innovation and transformation, particularly in AI-driven solutions. Sandeep Kalra, CEO and Executive Director, emphasized the company's focus on fostering client confidence and pursuing impactful transformations. Persistent is not only invested in AI but uses a unique strategy that combines deep domain knowledge, differentiated intellectual property, and strong partnerships to create robust solutions that meet the evolving market demands.

New Client Acquisition

During the second quarter, Persistent also saw strong new client acquisition which contributed positively to its financial success. The total contract value for the quarter stood at $609.2 million, while the annual contract value reached approximately $447.9 million, reflecting the company’s increasing footprint in various sectors such as high-tech, healthcare, and finance.

Noteworthy Achievements

Persistent has managed to secure several remarkable achievements over the last quarter, including:

• - High-Tech and Emerging Industries: Developed AI infrastructure platforms with a global infrastructure provider, significantly enhancing their market presence.
• - Financial Services: Transformed client experiences by modernizing accounting and tax software for a major fintech player, facilitating enhanced operational efficiencies.
• - Healthcare Innovations: Engaged effectively with clients to modernize their digital presence, improving patient and healthcare provider experiences through consolidated imaging applications.

Leadership Changes

Alongside the fiscal improvements, Persistent Systems announced a significant leadership change with Jaideep Dhok being promoted to Chief Operating Officer of Technology. His role focuses on enhancing service delivery, talent management, and advancing the company's AI strategy.

Recognition and Awards

Persistent's growth trajectory has garnered recognition from renowned entities, including being awarded the 'Growth Company of the Year' by Everest Group and receiving accolades for its excellence in AI at the National AI Awards 2025. The company has also been recognized as one of America’s best workplaces in technology by Newsweek, reinforcing its commitment to inclusion and diversity.

Company Outlook

Persistent Systems continues to maintain a strong position in the tech industry amid changing market dynamics. With a workforce exceeding 26,000 across 18 countries, the company's focus on digital engineering and customer success is set to drive further growth in the upcoming quarters. With initiatives aimed at sustainable practices and carbon neutrality, the company remains committed to responsible business operations while continuing on its path of substantial growth.

In conclusion, Persistent Systems demonstrates resilience and innovation in navigating a competitive landscape, effectively harnessing AI and digital technologies to ensure sustained growth and improvement in stakeholder value.