Appian Q4 Earnings Surpass Estimates, Revenues Rise Y/Y, Shares Up

Appian APPN reported fourth-quarter 2025 non-GAAP earnings of 15 cents per share, surpassing the Zacks Consensus Estimate by 59.57% and decreasing 16.7% year over year.

Revenues of $202.9 million increased 22% year over year and beat the consensus mark by 7.28%.  

Appian shares were up 2% at the time of writing this article. APPN shares have dropped 29.2% in the trailing 12 months, underperforming the Zacks Computer & Technology sector's 19% return.

Appian’s Q4 Top-Line Details

Subscriptions revenues (80% of total revenues) totaled $162.3 million, up 19% year over year. Professional Services revenues (20% of total revenues) increased 36% year over year to $40.6 million.

Appian Corporation Price, Consensus and EPS Surprise

Appian Corporation price-consensus-eps-surprise-chart | Appian Corporation Quote

Appian’s Q4 Operating Details

In the fourth quarter of 2025, Appian reported a non-GAAP gross margin of 73.4%, down 370 bps year over year.

In the reported quarter, non-GAAP research and development expenses were $42.1 million, up 16.1% year over year. Non-GAAP sales and marketing expenses increased 21.5% year over year to $66.9 million. Non-GAAP general and administrative expenses soared 22% year over year to $22.5 million.

The company reported a non-GAAP operating margin of 8.6%, down 260 bps year over year.

Appian Balance Sheet & Cash Flow

As of Dec. 31, 2025, APPN had cash, cash equivalents and short-term investments of $187.2 million compared with $191.6 million as of Sept. 30.

Cash generated by operating activities was $1.1 million in the reported quarter compared with $18.7 million in the previous quarter.

Appian Initiates 1Q26 and FY26 Guidance

For the first quarter of 2026, Appian expects cloud subscriptions revenues between $119 million and $121 million, indicating year-over-year growth of 19% to 21%. The company anticipates total revenues between $189 million and $193 million, indicating a year-over-year increase of 14-16%.

Adjusted EBITDA is expected to be between $19 million and $22 million.

Adjusted earnings is expected to be between 16 cents and 20 cents per share.

For 2026, Appian expects cloud subscriptions revenues between $502 million and $510 million, indicating year-over-year growth of 15-17%. The company anticipates total revenues between $801 million and $817 million, indicating a year-over-year increase of 10% to 12%.

Adjusted EBITDA is expected to be between $89 million and $99 million.

Adjusted earnings is expected to be between 82 cents and 96 cents per share.

Zacks Rank & Stocks to Consider

Appian currently carries a Zacks Rank #3 (Hold).

Micron Technology MU, MongoDB MDB and Credo Technology Group CRDO are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector.

Micron Technology shares have gained 309.6% in the past 12-month period. This Zacks Rank #1 (Strong Buy) company is scheduled to release second-quarter 2026 results on March 19. You can see the complete list of today’s Zacks #1 Rank stocks here.

MongoDB shares have returned 21.5% in the past 12-month period. MDB is scheduled to release its fourth-quarter 2026 results on March 2. The company currently sports a Zacks Rank #1.  
 
Credo Technology Group shares have gained 83.8% in the past 12-month period. CRDO is set to report its third-quarter fiscal 2026 results on March 2. The company currently sports a Zacks Rank #1.

#1 Semiconductor Stock to Buy (Not NVDA)

The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.

One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research