Sapiens International Shows Strength Amid Broader Sector Decline

Sapiens International (SPNS) has demonstrated notable resilience in 2025, with shares decreasing only 2.3% year to date. This is a significant outperformance compared to the broader Zacks Computer & Technology sector, which has seen a decline of 14%. SPNS attributes this strength to its steady recurring revenues, a growing customer base, and robust partnerships that include strong players like Microsoft (MSFT) and Cognizant (CTSH).

Solid Revenue Growth in 2024

In 2024, Sapiens’ recurring and reoccurring revenues from software products and post-production services rose by 14.1% from 2023, reaching $390 million. This revenue source now makes up 72% of the company’s total income.

The launch of StatementPro Multi-Company Operations stands out as a strategic development. It allows all Sapiens Financial & Compliance (F&C) customers to streamline statutory reporting across multiple statements and companies, leading to reduced administrative burdens and increased productivity. Additionally, Sapiens recently released its latest products, Sapiens IllustrationPro and Sapiens ApplicationPro, which enhance automation, risk intelligence, and efficiency for agents and advisors.

Peer Comparisons Highlight SPNS’s Performance

These advancements have enabled Sapiens to outperform peers such as Clearwater Analytics (CWAN), whose shares have dropped 15.8% year to date. Clearwater provides a comprehensive suite of solutions, including accounting and reporting, performance measurement, and risk analytics, for asset managers and large corporations, managing more than $8.8 trillion in invested assets for over 1,400 clients as of December 31, 2024.

Sapiens International Corporation N.V. Price and Consensus

Sapiens International Corporation N.V. price-consensus-chart | Sapiens International Corporation N.V. Quote

Expanding Partnerships Drive Growth

Sapiens has effectively expanded its System Integrator ecosystem. In 2024, SPNS forged stronger partnerships with major players like Deloitte and LTIMindtree and established new collaborations with Coforge and Cognizant, enhancing its regional presence and service capabilities.

The collaboration with Microsoft has been particularly advantageous, showcasing Sapiens’ product innovations in the insurance sector. In January 2025, SPNS launched its SaaS solution on the Microsoft Azure marketplace, facilitating access for Microsoft Azure customers.

One notable win was the selection of Sapiens CoreSuite for Life & Pensions by Universal Life, a major life and health insurer in Cyprus. This partnership aims to modernize outdated systems, enhance operations, and drive innovation in policy administration and claims processing. Universal Life will also use Sapiens Cloud Services to boost scalability and performance.

Furthermore, in March, Hiscox UK successfully implemented the Sapiens Insurance Platform via Sapiens Cloud, resulting in a 30% improvement in application speed and improved integration capabilities. This upgrade enhances Hiscox’s agility in providing services to its commercial and private clients.

Pioneer Insurance and Surety Corporation in the Philippines also selected the Sapiens Insurance Platform in support of their digital transformation, further expanding Sapiens’ international market reach.

Positive Outlook for Fiscal 2025

Looking ahead, SPNS expects revenues for fiscal 2025 to range between $553 million and $558 million. The Zacks Consensus Estimate for fiscal 2025 revenues stands at $555.81 million, indicating a potential growth of 2.48% compared to the previous year.

For earnings, the Zacks Consensus Estimate is set at $1.46 per share, which reflects no change over the past 30 days but indicates a year-over-year decline of 1.35%. The first-quarter 2025 revenue estimate is $136.51 million, suggesting a 1.69% increase compared to the same quarter last year. The consensus for first-quarter earnings remains at 35 cents per share, a slight decrease of 2.78% year-over-year.

Zacks Rank and Conclusion

Currently, SPNS holds a Zacks Rank #3 (Hold), offering a balanced perspective within the market landscape. To explore a complete list of today’s Zacks #1 Rank (Strong Buy) stocks, click here.

This overview underscores Sapiens International’s position in the market, highlighting its strategic initiatives and performance metrics as it navigates the evolving landscape of technology and compliance.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.