Abstract

Appian Corp will report fourth-quarter 2025 results on February 19, 2026 Pre-Market, with expectations centered on double-digit revenue growth and a sharp year-over-year increase in adjusted EPS amid mixed institutional sentiment.

Market Forecast

Consensus tracking points to Appian Corp aiming for fourth-quarter revenue of 189.00 million, with adjusted EPS around $0.09 and projected year-over-year growth of 15.06% for revenue and 1,105.71% for EPS; margin forecasts are not disclosed, though recent results indicate a robust gross profit margin and a modest net profit margin. The main business is expected to lean on subscription software growth for both top-line expansion and margin support, with services providing implementation leverage but at structurally lower margins. The most promising segment remains Subscriptions, which generated 147.19 million last quarter; segment-level year-over-year growth was not disclosed, but the company’s overall revenue rose 21.39% year-over-year.

Last Quarter Review

Appian Corp delivered third-quarter revenue of 187.00 million, a gross profit margin of 75.78%, GAAP net profit attributable to the parent company of 7.83 million, a net profit margin of 4.18%, and adjusted EPS of $0.32, with year-over-year increases of 21.39% for revenue and 113.33% for EPS. The quarter saw a significant sequential inflection in GAAP profitability, with net profit rising by 2,608.01% quarter-on-quarter, reflecting operating leverage and expense efficiency within the period. Subscriptions contributed 147.19 million and Professional Services contributed 39.82 million, and the company’s overall year-over-year growth of 21.39% indicates healthy demand across the business mix; segment-level year-over-year data was not disclosed.

Current Quarter Outlook

Subscriptions

Subscriptions anchor Appian Corp’s growth and margin profile, and last quarter they accounted for 147.19 million, providing the scale to sustain a gross profit margin of 75.78%. With total revenue for the upcoming quarter expected at 189.00 million and year-over-year growth guided at 15.06%, the role of subscriptions in delivering that growth is central because recurring revenues typically translate efficiently into gross profit due to lower delivery costs relative to services. A forecasted adjusted EPS of approximately $0.09, representing 1,105.71% year-over-year growth, also implies that subscription mix and operating leverage could underpin earnings quality, especially if non-core cost items remain contained. While the company has not provided segment-level year-over-year growth metrics for the current quarter, the prior quarter’s margin structure and the scale of subscription revenue suggest that subscriptions remain the primary engine for both revenue expansion and margin resilience, and likely the key determinant of whether Appian Corp meets or exceeds the top-line goal. Efficiency gains seen in the prior quarter, together with the sequential improvement in GAAP net profitability, indicate that subscriptions could continue to flow through more profitably than services, supporting both adjusted EPS and any potential upside to EBIT, which is estimated at 9.18 million with year-over-year growth of 107.36%.

Professional Services

Professional Services generated 39.82 million last quarter and remain a complementary contributor to the overall platform adoption, typically facilitating deployment and accelerating time-to-value for subscription contracts. However, services carry lower margins and can introduce variability into quarterly profit outcomes, so their role in this quarter’s earnings will likely be to support bookings conversion and customer implementations rather than to drive margin expansion. In the context of a 15.06% expected year-over-year revenue rise, services are likely to contribute steady implementation throughput but may dilute gross margins relative to a pure subscription mix; nonetheless, they can be strategically necessary to expand and deepen customer usage, which can later be reflected in recurring revenue growth. If services activity aligns efficiently with subscription deployments, it can enhance overall visibility into future recurring revenue streams without materially disrupting the margin profile. The interplay between services utilization and subscription activation will influence quarterly billings trends, and while those metrics are not included in the forecast, the prior quarter’s high gross margin implies that the subscription component is strong enough to absorb the services mix without significant erosion to consolidated margin quality.

Share-Price Drivers This Quarter

Near-term stock performance is likely to respond most to two reported metrics: how close actual revenue comes to the 189.00 million estimate, and whether adjusted EPS of roughly $0.09 can validate the implied 1,105.71% year-over-year acceleration against a favorable comparison base. The prior quarter’s net profit margin of 4.18% and the striking quarter-on-quarter net profit inflection suggest that even modest operating expense discipline could produce notable leverage at the current revenue scale; consequently, any deviation in spending or non-operating items may disproportionately affect quarterly EPS prints. A high gross profit margin of 75.78% last quarter provides a constructive backdrop for incremental margin progression if subscription pricing, renewals, and adherence to cloud hosting and support cost controls hold. At the same time, the forecast for EBIT at 9.18 million with a 107.36% year-over-year growth rate indicates improved operating performance, yet it also sets a higher validation threshold: execution needs to demonstrate consistency to satisfy investors after an unusually strong prior-quarter EPS outcome. Since segment-specific growth rates were not disclosed, investors will likely parse call commentary for signals around backlog quality, renewal activity, and the balance between new logos and expansions; those indicators, though not quantified in the current dataset, often color the market’s interpretation of whether the revenue estimate was achieved with durable momentum or via one-time or timing-related effects.

Adjusted EPS Dynamics and Margin Considerations

The projected adjusted EPS of approximately $0.09 implies a profound uplift on a year-over-year basis, which, when paired with the prior quarter’s 113.33% adjusted EPS growth, frames a narrative of improving unit economics and cost alignment. For that trajectory to be sustained, the ratio of subscription revenue to total revenue likely needs to remain elevated, given subscriptions’ favorable gross margin contribution relative to services. A key factor to watch is whether the net profit margin, which stood at 4.18% last quarter, can inch higher while revenue scales toward the 189.00 million estimate; even small increments in net margin can materially influence EPS at this size, particularly if operating expenses grow slower than revenue. EBIT guidance toward 9.18 million with a 107.36% year-over-year increase reinforces the idea of operational lift, but the durability of that lift depends on maintaining stable cost of revenue, sales efficiency, and rational expense controls in R&D and G&A. With no formal gross margin or net margin forecast disclosed for the quarter, the prior-quarter margin levels serve as a practical baseline; investors should interpret any reported changes in margin through the lens of subscription/services mix, pricing discipline, and the extent of any non-recurring items impacting the P&L.

Revenue Quality, Cash-Earnings Bridge, and Sequential Context

Revenue quality hinges on the renewed and expanded contracts embedded in subscriptions, supported by the professional services capacity to onboard and expand usage across customer environments. The third-quarter revenue of 187.00 million and the guided 189.00 million for the fourth quarter indicate a relatively tight sequential range, suggesting that the bulk of quarterly variability may come from cost allocation, service intensity, and timing of revenue recognition rather than large swings in topline momentum. The prior quarter’s quarter-on-quarter net profit change of 2,608.01% underscores how a modest shift in expense structure and mix can drive outsized changes in GAAP net income; by extension, even if revenue lands near the estimate, EPS can still surprise positively or negatively depending on operating expense normalization and non-operating line items. The bridge from revenue to adjusted EPS this quarter will likely be influenced by product support costs, cloud delivery expenses, and the scale of sales and marketing investments required to sustain renewals and expansions; if those are aligned with last quarter’s discipline implied by the margin outcomes, the guided EPS could prove achievable. Ultimately, this quarter’s print will test whether the margin strengths observed last quarter represent a developing trend or a favorable anomaly benefited by timing and mix.

Main Business and Largest Growth Potential

Subscriptions remain the main business driver, delivering 147.19 million last quarter and undergirding the company’s high gross margin. Their recurring nature and efficiency in scaling relative to services are essential to meeting the 189.00 million revenue target while maintaining earnings power sufficient to justify the $0.09 adjusted EPS estimate. The largest growth potential also sits within Subscriptions, given the recurring fundamentals and the observed margin structure; while specific segment year-over-year growth figures were not provided, the company’s overall 21.39% year-over-year revenue increase last quarter supports the view that subscription demand has been a meaningful contributor. In this context, any evidence of renewal strength, net expansion within existing accounts, or new deployments would bolster confidence in both near-term guidance and the prospective path for margin enhancement. Professional Services, at 39.82 million last quarter, play a strategic role in enabling subscription adoption and expansions; though lower margin by nature, they can catalyze future recurring growth, a dynamic that will matter if the company seeks to sustain double-digit revenue increases without eroding consolidated margin quality.

Analyst Opinions

Bearish opinions are currently the majority view, outweighing bullish calls during the January to February window. Barclays, through analyst Raimo Lenschow, reiterates a Sell rating with a $34.00 price target, emphasizing valuation constraints versus execution risk and the need for more consistent profitability to justify higher multiples around the near-term growth profile. Mizuho also maintains a Sell rating with a $37.00 price target, reflecting caution on the durability of recent earnings strength and the potential for margin variability due to services mix and spending normalization as the company scales. The bearish camp argues that despite a forecast of 15.06% year-over-year revenue growth and an implied 1,105.71% adjusted EPS surge tied to a favorable comparison base, the validation bar is elevated: execution must demonstrate sustained operating leverage beyond a single strong quarter, and margin improvements need to hold as the business mix evolves. From a valuation perspective, these analysts suggest that investors will demand clearer evidence of durable cash earnings conversion and consistent margin expansion before rerating the shares, particularly if near-term EBIT lands around 9.18 million and net margin remains single-digit. In their view, the primary risks to the quarter’s setup include any shortfall against the 189.00 million revenue estimate, signs of cost pressure that cap EPS near guide, or a services-heavy mix that dampens gross margin relative to the 75.78% level seen last quarter. They also highlight that the sequential GAAP net profit inflection of 2,608.01% in the prior quarter sets an anomalous comparator, making it harder to extrapolate trend strength without corroborating signals in recurring metrics and operating expense cadence. Collectively, the bearish majority will be looking for disciplined expense management, clear subscription momentum in bookings and renewals, and a balanced services contribution that does not dilute margins—conditions they argue are necessary to validate the ambitious EPS growth implied by guidance and to shift sentiment meaningfully more positive.