Appian (APPN) Q2 2026 Earnings Report

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.

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%).