Insurance software provider Sapiens beats Q3 revenue estimates
Sapiens reported Q3 revenue growth of 11.2% year-over-year, surpassing analyst expectations, with adjusted EPS also beating consensus. The company is set to be acquired by Advent for $43.50 per share, valuing it at $2.5 billion. Sapiens is focusing on cloud adoption and AI-driven innovation for growth. Revenue growth was driven by expansion in North America and a 26.7% increase in annualized recurring revenue. Analysts currently rate the stock as a "hold" with a median 12-month price target of $37.25, below its recent closing price of $43.20.
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Overview
- Sapiens Q3 revenue grows 11.2% yr/yr, beating analyst expectations
- Adjusted EPS for Q3 beats consensus, reflecting strong operational performance
- Company to be acquired by Advent for $43.50 per share, valuing it at $2.5 bln
Outlook
- Company will forgo Q3 2025 earnings call due to acquisition agreement by Advent
- Sapiens focuses on accelerating cloud adoption and expanding global footprint
- Company sees AI-driven innovation as a catalyst for sustainable growth
Result Drivers
- GEOGRAPHIC EXPANSION - Revenue growth driven by double-digit expansion in North America and Rest of the World markets
- ARR GROWTH - Annualized recurring revenue increased 26.7% year-over-year, with 17.5% organic growth and 9.2% from acquisitions
- AI-DRIVEN INNOVATION - Insurance platform empowers digital transformation and operational efficiency, fueled by AI-driven innovation
Key Details
Metric Beat/Mis Actual Consensu
s s
Estimate
Q3 Beat $152.30 $148.20
Revenue mln mln (3
Analysts
)
Q3 Beat $0.36 $0.35 (3
Adjusted Analysts
EPS )
Q3 EPS $0.25
Q3 Beat $20.50 $20.20
Adjusted mln mln (3
Net Analysts
Income )
Q3 Beat $25.50 $23.70
Adjusted mln mln (3
Operatin Analysts
g Income )
Q3 46.40%
Adjusted
Gross
Margin
Q3 $70.70
Adjusted mln
Gross
Profit
Analyst Coverage
- The current average analyst rating on the shares is “hold” and the breakdown of recommendations is no “strong buy” or “buy”, 3 “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 Sapiens International Corporation NV is $37.25, about 16% below its November 12 closing price of $43.20
- The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 19 three months ago
Press Release: For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact . (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.)
