Magic Software (MGIC) Q3 Earnings Lag Estimates

Core Insights - Magic Software reported quarterly earnings of $0.25 per share, missing the Zacks Consensus Estimate of $0.29 per share, but showing an increase from $0.23 per share a year ago, resulting in an earnings surprise of -13.79% [1] - The company achieved revenues of $161.66 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 4.43% and increasing from $142.97 million year-over-year [2] - Magic Software's stock has increased approximately 100.5% since the beginning of the year, significantly outperforming the S&P 500's gain of 13.4% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.28 on revenues of $151.3 million, and for the current fiscal year, it is $1.09 on revenues of $605.1 million [7] - The estimate revisions trend for Magic Software was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Computer - Software industry, to which Magic Software belongs, is currently ranked in the top 29% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - The performance of Magic Software's stock may also be influenced by the upcoming earnings report from Salesforce.com, another company in the same industry, which is expected to report quarterly earnings of $2.85 per share, reflecting a year-over-year change of +18.3% [9][10]