Magic Software Enterprises (NASDAQ:MGIC) Beats Q2 2025 Revenue and EPS Estimates, Shares Surge 5.8% in Pre-Market

Magic Software Enterprises Ltd. (NASDAQ:MGIC) reported its second-quarter 2025 financial results, delivering revenue and earnings per share (EPS) that exceeded analyst expectations. The company’s performance, coupled with its pre-market price action, suggests a positive market reaction to the earnings beat.

Key Financial Highlights

• Revenue: The company posted Q2 2025 revenue of $151.64 million, surpassing the consensus estimate of $148.82 million. This represents a year-over-year increase, though the exact growth rate was not specified in the press release.
• Earnings Per Share (EPS): Reported EPS came in at $0.26, slightly above the $0.254 estimate. While the beat is modest, it reflects stable execution in a competitive IT services and software development market.

Market Reaction

Following the earnings release, MGIC shares surged 5.8% in pre-market trading, indicating investor optimism about the results. This contrasts with the stock’s recent performance, which saw declines over the past week (-0.06%), two weeks (-0.09%), and month (-0.1%). The sharp pre-market rebound suggests that the earnings beat may have alleviated some near-term concerns.

Analyst Estimates for Future Quarters

Looking ahead, analysts expect:

• Q3 2025 Revenue: $153.2 million, with EPS projected at $0.2499.
• Full-Year 2025 Revenue: $610.67 million, with EPS estimated at $1.02.

The press release did not provide explicit forward guidance, so it remains unclear whether management’s internal forecasts align with these estimates. However, the lack of negative surprises in the current quarter may reinforce confidence in the company’s ability to meet or exceed future expectations.

Press Release Summary

The earnings announcement highlighted Magic Software’s position as a global provider of IT consulting, integration, and application development solutions. While the release did not delve into segment-specific performance, the overall revenue and EPS growth suggest continued demand for its software platforms and professional services.

For a deeper dive into Magic Software’s earnings history and future estimates, review the full earnings and estimates breakdown here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult a financial advisor before making any decisions.