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Appian
(NASDAQ:APPN)
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Rating:65Neutral
Price Target:
$46.00
▲(16.22% Upside)
Action:Reiterated
Date:08/26/26
APPN scores in the mid-range primarily due to improving operating execution and cash generation, reinforced by upbeat guidance and profitability (EBITDA) momentum from the latest earnings call. The score is held back by balance-sheet weakness (negative equity and meaningful debt), stretched technical conditions (overbought signals), and limited valuation support given negative P/E and no dividend yield provided.
Positive Factors
Cloud Subscription Growth
Cloud subscriptions grew 23% year over year in Q2 2026, while full-year guidance implies about 20% growth. Recurring subscription expansion supports revenue visibility and indicates continued enterprise adoption of Appian’s platform.
Negative Factors
Negative Equity and Debt
Negative equity and approximately $286M of debt weaken financial flexibility and make leverage harder to assess conventionally. This may constrain investment capacity and increase vulnerability if growth slows or cash generation deteriorates.
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Positive Factors
Negative Factors
Cloud Subscription Growth
Cloud subscriptions grew 23% year over year in Q2 2026, while full-year guidance implies about 20% growth. Recurring subscription expansion supports revenue visibility and indicates continued enterprise adoption of Appian’s platform.
Read all positive factors
Appian Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes revenue from different business segments, highlighting which areas drive growth and profitability, and indicating strategic focus and market opportunities.
Analyzes revenue from different business segments, highlighting which areas drive growth and profitability, and indicating strategic focus and market opportunities.
Data provided by:
The Fly
The FlyAppian (APPN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.75B
Dividend YieldN/A
Average Volume (3M)867.47K
Price to Earnings (P/E)―
Beta (1Y)1.18
Revenue Growth20.90%
EPS Growth37.46%
CountryUS
Employees2,149
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.15
Shares Outstanding40,540,210
10 Day Avg. Volume929,281
30 Day Avg. Volume867,465
Financial Highlights & Ratios
PEG Ratio-20.93
Price to Book (P/B)-55.81
Price to Sales (P/S)3.61
P/FCF Ratio44.04
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$32.40Price Target Upside-18.14% Downside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)1.07
Revenue Forecast (FY)$845.72M
Appian Business Overview & Revenue Model
Company Description
Appian Corporation provides a sophisticated low-code automation platform, serving clients across the United States and globally. This advanced technology significantly simplifies software development by automatically generating components like for...
How the Company Makes Money
Appian primarily makes money through recurring subscriptions to its Appian Platform (software revenue). Customers pay subscription fees—typically structured around contract terms and usage/licensing metrics—to access the platform, most commonly de...
Appian Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call communicated broad-based acceleration in cloud and subscription revenue, improved profitability (adjusted EBITDA beat and raised guidance), strong AI-driven customer adoption and meaningful customer wins with quantifiable cost savings. Operational metrics (Rule of 40, ARR expansion, go-to-market efficiency) improved and management is responsibly increasing investments while raising margin targets. Offsetting items were modest: slight sequential compression in gross margins, a reduced cash balance (partly due to buybacks), and an FX headwind expected in the back half of the year. Longer-term initiatives like AI monetization and large-scale application modernization remain early-stage but promising.Positive Updates
Strong Cloud Revenue Growth
Cloud subscription revenue grew 23% year-over-year to $131.7 million in Q2 2026 (22% constant currency), with cloud business guidance raised to ~20% growth for full year 2026 and full-year cloud subscription guidance of $525–529 million (≈20% Y/Y at midpoint).
Negative Updates
Gross Margin Compression vs Prior Quarter
Total gross margin was 72% in Q2, flat year-over-year but down from 74% in the prior quarter. Subscription gross margin was 84% (down from 85% year-over-year and 86% in the prior quarter), indicating slight sequential margin pressure.
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Q2-2026 Updates
Positive
Negative
Strong Cloud Revenue Growth
Cloud subscription revenue grew 23% year-over-year to $131.7 million in Q2 2026 (22% constant currency), with cloud business guidance raised to ~20% growth for full year 2026 and full-year cloud subscription guidance of $525–529 million (≈20% Y/Y at midpoint).
Read all positive updates
Company Guidance
The company updated guidance for Q3 2026 and full-year 2026: for Q3 it expects cloud subscription revenue of $133–$135M (≈18% y/y at the midpoint), total revenue of $214–$218M (≈16% y/y at the midpoint), adjusted EBITDA of $30–$33M and non‑GAAP EPS of $0.31–$0.35 (assumes 72.6M fully diluted shares); for the full year it now expects cloud subscription revenue of $525–$529M (≈20% y/y at the midpoint), total revenue of $845–$853M (≈17% y/y at the midpoint), adjusted EBITDA of $104–$110M (~13% margin and ≈39% y/y growth at the midpoint) and non‑GAAP EPS of $1.04–$1.12 (≈77% growth at the midpoint, assumes 73.2M shares). Management also guided that non‑cloud subscription revenue should grow low double digits in Q3 and low‑ to mid‑single digits for the year, professional services should grow mid‑teens in Q3 and high‑teens for the year, net interest income/expense is ~ $3M in Q3 and $10M for the year, FX (rates as of early August) will be a modest headwind in H2, and they expect roughly 2 percentage points of EBITDA margin improvement in 2026 (raising margin to ~13%).Appian Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
34
Negative
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 795.31M | 726.94M | 617.02M | 545.36M | 467.99M | 369.26M |
| Gross Profit | 581.19M | 527.34M | 466.84M | 402.04M | 334.69M | 265.17M |
| EBITDA | 24.59M | 37.00M | -57.60M | -80.90M | -141.26M | -81.75M |
| Net Income | -10.62M | 1.23M | -92.26M | -111.44M | -150.92M | -88.64M |
Balance Sheet | ||||||
| Total Assets | 585.71M | 691.39M | 621.04M | 627.50M | 594.21M | 504.52M |
| Cash, Cash Equivalents and Short-Term Investments | 167.87M | 187.22M | 159.86M | 159.00M | 196.00M | 155.97M |
| Total Debt | 295.33M | 345.39M | 314.99M | 277.35M | 184.03M | 56.89M |
| Total Liabilities | 690.89M | 738.39M | 653.68M | 575.16M | 448.51M | 270.60M |
| Stockholders Equity | -105.18M | -46.99M | -32.64M | 52.34M | 145.70M | 233.92M |
Cash Flow | ||||||
| Free Cash Flow | 76.75M | 59.56M | 3.08M | -120.08M | -115.65M | -59.98M |
| Operating Cash Flow | 80.76M | 62.87M | 6.88M | -110.44M | -106.55M | -53.92M |
| Investing Cash Flow | 21.99M | -12.83M | -35.39M | 28.59M | 10.26M | 41.94M |
| Financing Cash Flow | -93.57M | -36.28M | -258.00K | 79.17M | 142.87M | 2.79M |
Appian Risk Analysis
Appian disclosed 58 risk factors in its most recent earnings report. Appian reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Appian Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $29.82B | 99.17 | 4.26% | ― | 11.22% | 74.46% | |
69 Neutral | $19.42B | -72.15 | 50.26% | ― | 42.45% | 46.36% | |
66 Neutral | $3.63B | 66.63 | 5.65% | ― | 32.44% | -78.82% | |
65 Neutral | $2.75B | -230.53 | 16.36% | ― | 20.90% | 37.46% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
45 Neutral | $15.12B | 37.19 | 8.49% | ― | 5.87% | -0.31% |
* Technology Sector Average
APPN
Appian
34.58
1.86
5.68%
AKAM
Akamai
105.61
27.45
35.12%
OKTA
Okta
167.60
73.75
78.58%
FOUR
Shift4 Payments
42.29
-44.96
-51.53%
RBRK
Rubrik, Inc. Class A
91.63
-6.87
-6.97%
Appian Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Appian Stockholders Approve Directors, Auditor and Equity Plan
Positive
Jun 8, 2026
On June 3, 2026, Appian held its virtual annual meeting of stockholders, with approximately 92.79% of the combined voting power represented, constituting a quorum for business. Stockholders elected eight directors to serve until the 2027 annual me...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.