Analysts Have Made A Financial Statement On Persistent Systems Limited's (NSE:PERSISTENT) Third-Quarter Report

It's been a good week for Persistent Systems Limited (NSE:PERSISTENT) shareholders, because the company has just released its latest third-quarter results, and the shares gained 6.7% to ₹6,361. The result was positive overall - although revenues of ₹31b were in line with what the analysts predicted, Persistent Systems surprised by delivering a statutory profit of ₹23.93 per share, modestly greater than expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Persistent Systems

Taking into account the latest results, the current consensus from Persistent Systems' 35 analysts is for revenues of ₹142.8b in 2026. This would reflect a sizeable 26% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 28% to ₹113. In the lead-up to this report, the analysts had been modelling revenues of ₹139.5b and earnings per share (EPS) of ₹111 in 2026. There doesn't appear to have been a major change in sentiment following the results, other than the small lift in revenue estimates.

It may not be a surprise to see thatthe analysts have reconfirmed their price target of ₹6,118, implying that the uplift in revenue is not expected to greatly contribute to Persistent Systems's valuation in the near term. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Persistent Systems, with the most bullish analyst valuing it at ₹9,267 and the most bearish at ₹3,400 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Persistent Systems' past performance and to peers in the same industry. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 20% growth on an annualised basis. That is in line with its 25% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 8.1% per year. So it's pretty clear that Persistent Systems is forecast to grow substantially faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at ₹6,118, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Persistent Systems. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Persistent Systems going out to 2027, and you can see them free on our platform here..

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.