Persistent Systems Limited (NSE:PERSISTENT) Just Released Its First-Quarter Results And Analysts Are Updating Their Estimates

Persistent Systems Limited (NSE:PERSISTENT) shareholders are probably feeling a little disappointed, since its shares fell 7.2% to ₹5,151 in the week after its latest quarterly results. Persistent Systems reported in line with analyst predictions, delivering revenues of ₹33b and statutory earnings per share of ₹27.21, suggesting the business is executing well and in line with its plan. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Persistent Systems after the latest results.

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Following the latest results, Persistent Systems' 34 analysts are now forecasting revenues of ₹141.7b in 2026. This would be a meaningful 13% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to step up 11% to ₹113. Before this earnings report, the analysts had been forecasting revenues of ₹142.5b and earnings per share (EPS) of ₹113 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

Check out our latest analysis for Persistent Systems

There were no changes to revenue or earnings estimates or the price target of ₹5,848, suggesting that the company has met expectations in its recent result. 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. Currently, the most bullish analyst values Persistent Systems at ₹7,536 per share, while the most bearish prices it at ₹3,675. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Persistent Systems' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 18% growth on an annualised basis. This is compared to a historical growth rate of 25% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.6% annually. So it's pretty clear that, while Persistent Systems' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at ₹5,848, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Persistent Systems going out to 2028, and you can see them free on our platform here..

You can also see our analysis of Persistent Systems' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.