#USA #Persistent Systems #revenue growth #AI Strategy #Santa Clara, California

Persistent Systems' Impressive Q2 FY26 Financial Results

Persistent Systems (BSE: 533179) and (NSE: PERSISTENT) recently announced its audited financial results for the quarter ending September 30, 2025. The company reported an impressive revenue of $406.2 million for Q2 FY26, reflecting a 17.6% year-over-year growth. This marks the 22nd consecutive quarter of revenue growth for Persistent Systems, showcasing its resilience and strong market positioning.

Financial Highlights

The revenue figures highlight an operating margin of 16.3% with a quarter-over-quarter growth of 4.2%. Noteworthy metrics include a PBT (Profit Before Tax) of $6,168.3 million and a PAT (Profit After Tax) of $4,714.7 million, with respective year-over-year increases of 42.0% and 45.1%. Persistent's focus on transformative technology solutions has evidently enabled this sustained financial performance.

Key Strategies Driving Growth

Sandeep Kalra, the CEO, attributed the company's achievements to deep client trust and an effective AI strategy. He emphasized that the strategy leverages a platform-led approach, supported by a robust portfolio of intellectual properties, accelerators, and strategic partnerships. This comprehensive methodology allows clients to innovate, modernize their operations, and see measurable impacts rapidly.

The company has begun to focus more on artificial intelligence solutions, creating opportunities for clients to integrate AI into their operations more effectively. This trend may very well lead to future growth as industries look to upgrade their technological frameworks in a fast-evolving digital landscape.

Significant Wins in Q2 FY26

In the second quarter, Persistent reported $609.2 million in total contract value (TCV) and $447.9 million in annual contract value (ACV). Several noteworthy client wins were revealed, including:

• - Collaborating with a global infrastructure provider to build robust AI infrastructure platforms.
• - Partnering with a global cybersecurity leader to transition from legacy systems to next-generation products.
• - Developing critical grid technology for a major energy technology company.

In the banking and financial services sector, the company transformed tax and accounting software for a financial technology platform and improved customer relationship management through Generative AI solutions for a wealth management firm. Additionally, in healthcare and life sciences, Persistent enhanced digital engagement for a large healthcare client and consolidated imaging applications to improve patient care.

Leadership Changes

There were strategic leadership adjustments reported with Jaideep Dhok being elevated to Chief Operating Officer - Technology. This role, which he assumed on August 12, 2025, leverages his previous experience and is expected to enhance the company’s talent acquisition and management strategies as well as oversee alliances and partnerships.

Awards and Recognition

During this quarter, Persistent Systems also received multiple accolades for its excellence in technology and workplace culture. Highlights include:

• - Winning the ISG CX Star Performer Awards in various categories.
• - Recognition as the Growth Honor of the Year at the Everest Group Elevate Honors 2025.
• - Achieving a position as a leader in the Everest Group Talent Readiness for Next-gen Cloud Services PEAK Matrix® Assessment 2025.

With a commitment to sustainability and responsible business practices, Persistent is celebrated in several indices and acknowledged as one of America’s greatest workplaces. Moreover, the company achieved carbon neutrality and maintains its status as a fast-growing entity in the competitive IT services landscape with a reported 468% growth in brand value since 2020.

Conclusion

In summary, Persistent Systems continues to demonstrate robust growth capabilities in a dynamic market environment. The company's holistic approach to product development and commitment to client success underscores its position as a leader in the IT services sector. The integration of innovative technologies, especially in AI, will likely serve as a catalyst for future advancements. Investors and stakeholders can expect more remarkable developments as Persistent Systems further solidifies its strategic vision for the years to come.