Appian’s third quarter was met with a positive reaction from the market, reflecting the company’s strong performance in cloud subscriptions and continued operational efficiency. Management credited the robust results to the rising adoption of Appian’s AI-powered workflow automation, with CEO Matthew Calkins highlighting that “over 25% of our customer base pays for Appian AI” and referencing a 50% increase in large, seven-figure software deals. The company also pointed to ongoing improvements in sales and marketing productivity, which contributed to expanding margins and overall profitability.

Is now the time to buy APPN? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Appian’s Q3 Earnings Call

• Sanjit Singh (Morgan Stanley) asked about the source of cloud ACV growth. CEO Matthew Calkins attributed it to broad-based traction from the upmarket strategy and AI, rather than strength in any single sector.
• Steven Enders (Citi) inquired about federal sector efficiency and AI Studio’s expected customer impact. Calkins described lasting improvements in government procurement behaviors and highlighted strong beta feedback for Agent Studio, with CFO Srdjan Tanjga adding that its monetization would expand the AI advanced tier.
• Raimo Lenschow (Barclays) asked about Appian’s competitive differentiation in AI and the sustainability of margin improvements. Calkins emphasized Appian’s focus on process and data fabric as AI complements, while Tanjga noted that future margin expansion will be more modest than recent gains.
• Devin Au (KeyBanc Capital Markets) queried international growth drivers and professional services margin sustainability. Calkins cited AI-driven demand and higher-level executive engagement, while Tanjga cautioned that unusually high services margins reflected peak utilization unlikely to persist every quarter.
• Jacob Roberge (William Blair) sought clarity on balancing sales headcount investments with margins and Appian’s approach to legacy app modernization. Tanjga said moderate headcount growth is planned, with margin expansion expected to continue but at a slower pace, and Calkins described Appian’s collaborative approach to legacy transformation as a unique differentiator.

Catalysts in Upcoming Quarters

In coming quarters, the StockStory team will watch (1) the adoption and customer impact of Agent Studio and other new AI features, (2) the pace and profitability of sales organization expansion as Appian returns to headcount growth, and (3) continued strength in large enterprise and public sector deals—especially as government procurement normalizes. Execution on international expansion and further AI monetization will also be important indicators of sustained momentum.

Appian currently trades at $45.39, up from $29.33 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).

The Best Stocks for High-Quality Investors

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.