Magic Software Reports Second Quarter and First Half 2025 Financial Results

Written by Emily J. Thompson, Senior Investment Analyst

MGIC+2.17%

Source: Newsfilter

Updated: 08-13

4mins

Source: Newsfilter

Financial Performance: Magic Software Enterprises reported a revenue increase of 11.3% to $151.6 million for Q2 2025, with net income rising by 9.8% to $9.9 million, and a revised full-year revenue guidance of $600-$610 million reflecting strong operational momentum.
Dividend Declaration: The company's board declared a semi-annual cash dividend of 29.6 cents per share, totaling approximately $14.5 million, payable on October 22, 2025, subject to withholding tax according to Israeli law.

MGIC.O

$19.810+43.073%Past 6 months

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Candle

YTD

Intellectia

Analyst Views on MGIC

Wall Street analysts forecast MGIC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MGIC is 20.50 USD with a low forecast of 18.00 USD and a high forecast of 23.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

3 Analyst Rating

5.72% Upside

2 Buy

1 Hold

0 Sell

Moderate Buy

5.72% Upside

Current: 19.390

Low

18.00

Averages

20.50

High

23.00

5.72% Upside

Current: 19.390

Low

18.00

Averages

20.50

High

23.00

Barclays

Overweight

maintain

$16 -> $18

2025-08-13

Reason

Barclays

Price Target

$16 -> $18

2025-08-13

maintain

Overweight

Reason

Barclays raised the firm's price target on Magic Software to $18 from $16 and keeps an Overweight rating on the shares. The company's top-line growth was higher than the firm's estimates as well as consensus, while margins came in lower, the analyst tells investors in a research note. The firm added that management raised year-end guidance slightly, commenting on positive traction, and lifted its price target as it rolls its target multiples forward to its FY26 revenues.

Barclays

Tavy Rosner

Buy

Maintains

$15 → $16

2025-03-13

Reason

Barclays

Tavy Rosner

Price Target

$15 → $16

2025-03-13

Maintains

Buy

Reason

Barclays analyst Tavy Rosner raised the firm's price target on Magic Software to $16 from $15 and keeps an Overweight rating on the shares. The company reported a solid quarter and improving outlook but the "main event" is the merger proposal with Matrix, the analyst tells investors in a research note.

William Blair

Maggie Nolan

Buy

Hold

Downgrades

n/a

2025-03-12

Reason

William Blair

Maggie Nolan

Price Target

n/a

2025-03-12

Downgrades

Buy

Hold

Reason

William Blair downgraded Magic Software to Market Perform from Outperform.

Barclays

Tavy Rosner

Buy

Maintains

$14 → $15

2024-11-19

Reason

Barclays

Tavy Rosner

Price Target

$14 → $15

2024-11-19

Maintains

Buy

Reason

Barclays raised the firm's price target on Magic Software to $15 from $14 and keeps an Overweight rating on the shares. The company reported 10% year-over-year revenue growth, higher than consensus estimates, the analyst tells investors in a research note. The firm says Magic's strong sales performance despite the fact that North America remains weak illustrates the company's diversified offering.

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About MGIC

Magic Software Enterprises Ltd. is a provider of application development, business process integration platforms, vertical software solutions and related professional services. The Company is a vendor of information technology (IT) outsourcing services. Its software technology is used by customers to develop, deploy and integrate on premise, mobile and cloud-based business. It operates through two segments: software solutions and IT professional services. The software services segment includes software technology and complementary services. The IT professional services segment offers IT services in the areas of infrastructure design and delivery, application development, technology planning and implementation services, and communications services and solutions. Its product portfolio includes Magic xpa Application Platform, AppBuilder Application Platform and Magic xpi Integration Platform. Its vertical software packages include Leap, Hermes Solution, HR Pulse and MBS Solution.

About the author

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Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.