What Does Magic Software (MGIC) Do? - Stock Outlook, Earnings, Market Cap, Related Stocks, Headquarters Full Summary
Low-code/iPaaS enterprise software. Magic xpa, xpi, xpc integrated platform. 13% growth in 2025. Matrix IT acquisition (February 2026). Cloud expansion.
Subscribe🏢 What is Magic Software?
Magic Software Enterprises Ltd (MGIC) is a global enterprise software company that provides low-code/no-code application development and integration platforms. Founded in 1983 in Israel, the company was acquired by Matrix IT Ltd in February 2026. Its core products include Magic xpa (application development platform), Magic xpi (on-premises integration), Magic xpc (new iPaaS cloud integration solution), Magic SmartUX (mobile business applications), and AppBuilder (low-code application build). The company operates two business segments—software services and IT professional services—and delivers legacy system and cloud application integration solutions to thousands of enterprise customers and partners across more than 50 countries. It maintains strategic partnerships with major technology platforms including Salesforce, IBM, and Microsoft, and recorded 2024 revenue of $550 million and Q3 2025 revenue of $160 million.
💰 How Does It Make Money?
| Business Segment | Revenue Share | Description |
|---|---|---|
| Software Services (Magic xpa, xpi, xpc, AppBuilder) | ~65% | Low-code platform licenses, cloud SaaS services, subscription fees |
| IT Professional Services (consulting, outsourcing) | ~30% | Application development, integration consulting, IT infrastructure services |
| Data Management & Analytics (Magic DM Platform) | ~5% | Data integration, analytics platform licenses |
Magic Software's 2024 revenue reached $603.2M, recording a +12.7% change rate. 2025 revenue achieved double-digit growth versus the prior year, and Q3 2025 revenue set a new single-quarter record. 2024 operating profit grew 7% versus the prior year, and Q4 2024 operating profit recorded 28.6% growth. Recent cash holdings remain at a solid level, keeping the financial structure sturdy. 2025 revenue guidance has been raised, with the growth trajectory accelerating.
Market Cap and Company Scale
Market cap stands at $853.4M, with an employee count of 3,787 people.
Magic Software is a central platform for enterprise digital transformation, sitting at the heart of global market demand for low-code/no-code development and cloud integration. The iPaaS (Integration Platform as a Service) market is growing more than 20% annually, and the need for legacy-to-cloud integration has become a core challenge for enterprises. The launch of Magic xpc (new iPaaS) and the strengthening of cloud-native architecture are accelerating the expansion into the high-value cloud business. Partnerships with Salesforce, IBM, and Microsoft reinforce its positioning within the ecosystem.
📈 Magic Software Outlook and Stock Price Trends
1-Year Price Performance
Analyst Consensus
52-Week Price RangeMarket growth in enterprise digital transformation and the surge in cloud integration demand represent the biggest opportunities for Magic Software. High growth in the iPaaS market (20%+ annually), expanding adoption of low-code platforms, and rising investment in legacy system modernization are growth drivers. On the other hand, intense competition from rivals such as Talend, MuleSoft (MULE, acquired by Salesforce), and Informatica (INFA), the strengthening of in-house integration tools by cloud companies (AWS, Azure, Google Cloud), and integration risk from the Matrix IT acquisition are near-term challenges. Revenue growth acceleration, expansion of the cloud business mix, and successful acquisition integration are the key variables.
⚔️ Core Competitive Strengths and Risks
Global leadership in low-code/cloud integration platforms and high growth rates are strengths, while intensifying competition and Matrix IT acquisition integration risk are challenges.
💪 Core Competitive Strengths
⚠️ Core Risks
Competitors and Related Stocks (Beneficiaries)
iPaaS and low-code platform competitors include Talend (owned by Altom Capital), MuleSoft (MULE, acquired by Salesforce), Informatica (INFA), Workato, and Zapier. In-house integration tools from cloud companies include AWS AppFlow, Microsoft Logic Apps, and Google Cloud Dataflow. Global IT consulting firms include Accenture (ACN), Deloitte, IBM (IBM), and Infosys (INFY). Magic Software's strengths lie in more than 40 years of integration technology history, on-premises-to-cloud hybrid support, and integration with major enterprise platforms.
Competitors| Ticker | Company | Price | Change | Market Cap | P/E | PBR | ROE | Dividend Yield |
|---|---|---|---|---|---|---|---|---|
| INFY | Infosys Ltd ADR | $10.91 | -0.2% | $44.3B | 13.4 | 4.6 | 32.27% | 5.68% |
| ACN | Accenture plc | $177.91 | +1.2% | $108.9B | 14.2 | 3.4 | 24.95% | 3.65% |
| IBM | International Business Machines Corp | $234.02 | -2.5% | $220.5B | 20.8 | 6.4 | 34.55% | 2.89% |
Related stocks (beneficiaries)| Ticker | Company | Price | Change | Market Cap | P/E | PBR | ROE | Dividend Yield |
|---|---|---|---|---|---|---|---|---|
| CRWD | Crowdstrike Holdings Inc | $208.75 | +0.5% | $213.7B | 5847.3 | 41.9 | 0.85% | - |
| NOW | ServiceNow Inc | $131.17 | +0.1% | $135.6B | 81.9 | 10.8 | 14.24% | - |
| ADBE | Adobe Inc | $248.83 | -2.4% | $98.9B | 14.2 | 8.6 | 62.95% | - |
| MSFT | Microsoft Corp | $492.56 | +0.2% | $3.66T | 27.4 | 8.3 | 34.04% | 0.79% |
✅ Investor Checklist
Magic Software is a central platform company in enterprise digital transformation and a global leader in low-code application development and cloud integration. Q3 2025 revenue growth of 13.1%, a substantial full-year revenue target, and the expansion of the new iPaaS cloud platform (Magic xpc) demonstrate that the company sits at the heart of market growth. However, intensifying competition, Matrix IT acquisition integration, and cloud business profitability will be the key factors for investment decisions.
| Checklist | What to Verify | Current Status |
|---|---|---|
| 📈 Revenue Growth Acceleration | Quarterly revenue and growth rate, growth rate by region and segment | Sustained quarterly growth of more than 10% |
| ☁️ Cloud Business Share | iPaaS revenue share, number of Magic xpc adopting companies, SaaS renewal rate | More than 40% of revenue from cloud business |
| 🔧 Matrix IT Integration Progress | Organizational integration completion, technology integration, customer retention rate | Realization of integration synergies and minimization of customer attrition |
| 💰 Margin and Profitability | Quarterly operating profit, adjusted EBITDA, EPS | Operating profit maintained at 20% or higher, positive EPS growth |
Competitor technology strengthening (MuleSoft, Informatica, cloud companies' in-house tools), Matrix IT acquisition integration failure, unexpected deterioration in cloud iPaaS business profitability, and major customer losses are key threats. In addition, a decline in corporate digital investment due to an economic slowdown is also a concern.
Magic Software is a central platform company in the enterprise digital transformation market. Revenue growth of more than 13% in 2025, expansion of the new iPaaS cloud platform, and partnerships with major technology platforms (Salesforce, IBM, Microsoft) provide a strong foundation for long-term growth. However, competitor technology strengthening, the success of Matrix IT acquisition integration, and the achievement of cloud business profitability are expected to be the key variables for investment decisions. If continued high growth in the enterprise low-code/iPaaS market is secured, Magic Software is a company with significant upside potential.
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