Persistent Systems FY26: Revenue $1.65B, Dividend ₹40

What Persistent reported for FY26 and Q4FY26

Persistent Systems closed FY26 with revenue of $1,654.4 million, up 17.4% year-on-year (YoY), alongside an EBIT margin of 15.6%. In Q4FY26, revenue came in at $136.0 million, up 16.2% YoY and 3.2% quarter-on-quarter (QoQ), with an EBIT margin of 16.3%. The company also highlighted that Q4FY26 was its 24th sequential quarter of growth.

On profitability, consolidated net profit for Q4FY26 rose 33.73% YoY to ₹529.26 crore. For the full year, profit increased 33.20% to ₹1,865.12 crore. Management attributed performance to execution consistency and demand trends shaped by AI adoption.

Dividend: ₹40 per share for FY26

Persistent said it declared a full-year dividend of ₹40 per share. The board recommended a final dividend of ₹18 per share, which takes the FY26 total to ₹40 per share, compared with ₹35 per share for FY25.

Dividend decisions matter for investors tracking cash return visibility, especially when the sector is balancing growth investments with margin discipline.

One-time labour code impact and margin notes

The company disclosed a one-time impact from New Labour Codes in FY26, estimated at around 0.6% on EBIT and around 0.5% on PAT. It also noted a statutory impact of ₹89 crore linked to implementation of the new labour codes.

In its quarterly commentary, the company said Q4FY26 had an impact of 60 basis points on margins due to higher consulting and advisory expenses related to corporate development initiatives.

Order booking and demand indicators

Persistent reported quarterly order booking of $100.8 million in Total Contract Value (TCV) for the quarter ended March 2026. While TCV does not directly translate to revenue in the same quarter, it is a key demand indicator that investors watch for pipeline strength.

Management commentary also focused on the market environment being reshaped by AI and how its “AI-first strategy” is influencing delivery and operating model improvements.

Client concentration: what drove softness in the top accounts

On the earnings discussion, the company addressed a question around the top five accounts being “slightly soft” for the quarter. Management said the top five accounts include two financial services, one tech, and one healthcare life sciences account, and that these accounts have “been growing well over the years.”

It attributed the softness to promised cost savings and offshoring, describing this as part of larger deals. The company said it continues to maintain strong relationships with these accounts.

FY27 ambition: $1 billion target clarified as Q4 exit run rate

Persistent reiterated its ambition of reaching $1 billion by FY27 and said it is “steadily marching towards it” and expects to reach it, barring major macroeconomic changes. Importantly, management clarified that the $1 billion target is for the FY27 Q4 exit run rate.

It also noted that the geopolitical situation in the Middle East does not directly affect the company because it has minimal exposure there, but prolonged issues could affect inflation and the sector more broadly.

Vertical and platform commentary: healthcare and Salesforce engagement

Persistent said the healthcare vertical showed strong growth in the quarter despite headwinds faced by parts of the industry. Management noted that while it shares customers with other Tier-1 companies, it has continued to grow and said it has not seen significant business reductions or risks in the healthcare vertical.

On the Salesforce ecosystem, management said the Headless 360 framework increases work because customers need integrators to help use agents through APIs. It said it is working closely with Salesforce and expects increased engagement driven by this framework, creating opportunities across existing and new customers.

Geography and client bucket performance shared on the call

Persistent disclosed YoY growth in Q4FY26 by geography: North America 17.4%, Europe 12.3%, India 4.2%, and rest of the world 41.4% (on a smaller base). For FY26, it reported: North America 17.2%, Europe 26.7%, India 9.5%, and rest of the world 27.5%.

It also shared YoY growth across customer buckets in Q4FY26: top five customers 20.7%, top 10 19.4%, top 20 20.0%, top 50 20.9%, and top 100 19.5%.

Key numbers at a glance

Market impact and what investors will track next

For investors, the quarter combined solid growth, steady margins, and a higher full-year dividend. The clarified framing of the $1 billion FY27 goal as a Q4 exit run rate is also important because it sets expectations on trajectory rather than a simple full-year average.

Near-term attention is likely to remain on deal execution tied to cost optimisation and offshoring commitments, the sustainability of margins after one-time impacts, and whether AI-led engagements translate into continued order momentum.

Conclusion

Persistent Systems ended FY26 with double-digit revenue growth, an improved operating margin profile, and a higher dividend payout. Management reiterated confidence in its AI progress and said it is on track for a $1 billion FY27 Q4 exit run rate, barring major macro changes.