Appian Q3 revenue beats estimates on cloud subscription growth
Overview
Process automation platform's Q3 revenue grew 25% yr/yr, beating analyst expectations
Adjusted EPS for Q3 beat analyst expectations
Company saw strong growth in cloud subscriptions and professional services revenue
Outlook
Appian sees Q4 cloud subscriptions revenue between $143 mln and $145 mln
Company expects Q4 total revenue between $233 mln and $237 mln
Appian expects Q4 adjusted EBITDA between $30 mln and $33 mln
Result Drivers
CLOUD SUBSCRIPTION GROWTH - Cloud subscriptions revenue rose 20% yr/yr to $136.4 mln, supporting overall revenue growth
PROFESSIONAL SERVICES DEMAND - Professional services revenue increased 18% yr/yr to $46.9 mln
EXPANDED RECURRING REVENUE - Cloud net annualized recurring revenue expansion was 120% as of September 30, 2026
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $234.63 mln | $215.22 mln (6 Analysts) |
Q3 Adjusted EPS | Beat | $0.51 | $0.33 (7 Analysts) |
Q3 Net Income | $12.34 mln | ||
Q3 Gross Profit | $171.15 mln | ||
Q3 Operating Expenses | $149.85 mln | ||
Q3 Operating Profit | $21.30 mln | ||
Q3 Pretax Profit | $13.18 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy."
Wall Street's median 12-month price target for Appian Corp is $40.00, about 19.7% below its November 4 closing price of $49.82
The stock recently traded at 36 times the next 12-month earnings vs. a P/E of 24 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)