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Formula Systems’ operating companies help businesses and government organizations build, connect and run their computer systems. Customers pay for development and implementation projects, outsourced technology staff and ongoing operations and support. These services generate most of the group’s revenue, and Israel supplies the majority of its business. Matrix is a major operating company; Magic Software is now its wholly owned subsidiary.
A smaller revenue stream comes from proprietary software and related services. Magic Software’s Magic xpa helps customers build business applications, while Magic xpi connects applications and data. Michpal sells payroll, pension and workforce software and services solely in Israel. Customers pay for software licenses, implementation and continuing maintenance and support. The group also sells third-party software, hardware and computing infrastructure.
The business depends on repeat customer engagements, skilled technology staff and delivering projects within agreed scope and cost. Israeli government spending and tender awards support part of its activity; the Ministry of Education is a significant customer for Michpal. Privacy and data-security rules restrict how the group handles customer information and can require changes to its products and practices.
The risk section is the longest, dullest part of the filing. This keeps only what can really hurt you: where it hits, how hard, when it plays out.
Every company claims an edge. Each one is checked against hard numbers like margins and returns: which hold, and which line gives way first.
Formula’s results depend chiefly on Israeli IT-services demand and its controlled Matrix business, so watch Matrix and local rivals Hilan and Malam Team alongside these global peers.
Cognizant competes with Formula for enterprise spending on consulting, software development, connecting systems, testing and outsourced IT work. Its financial-services and healthcare business offers a comparison for demand from customer groups Formula also serves.
Infosys competes with Formula to develop and connect applications, run cloud infrastructure, test software and handle outsourced IT work for large organizations. Watch demand for its application and cloud services as a comparison for the work Formula sells through its operating businesses.
Wipro competes with Formula for clients buying application development, IT infrastructure, cybersecurity and work connecting their systems. Both also sell other vendors’ software and hardware, making Wipro’s mix of IT services and product sales a useful comparison.
EPAM competes with Formula’s operating businesses for enterprise software-engineering, cloud-transformation, data and AI projects. Its work for financial-services, high-tech and healthcare customers offers a comparison for demand in industries Formula also serves.
IBM both competes with Formula to help enterprises modernize their IT and supplies software that Formula’s Matrix business distributes to U.S. public-sector customers. Demand for that software is the direct connection to watch, beyond competition in consulting.
CI&T competes with Formula’s Magic business to sell software development, maintenance and consulting, with both serving North American clients. North America supplied 43.4% of CI&T’s 2025 revenue; its ability to add clients there is a useful comparison for Magic’s exposure to that market.
Amdocs competes with Formula for telecommunications customers paying for application development, connecting systems, cloud services and managed IT operations. Its work moving telecom workloads to the cloud and running customers’ applications is the closest comparison for Formula’s services to major global telecom companies.
International Business Machines Corporation earningsIBM
IBM’s report offers a read on software demand behind Matrix’s distribution of IBM software to U.S. public-sector customers.
Look at IBM’s software results and any discussion of public-sector demand. Stronger software demand would be a favorable signal for the market behind Matrix’s distribution work; weaker demand would suggest that channel may face pressure. IBM’s software revenue also includes other products and customers, so it cannot establish Matrix’s sales.
Infosys Limited earningsINFY
Demand for Infosys’s application and cloud services offers a market comparison for the software services Formula Systems sells to large organizations.
Compare demand for Infosys’s application and cloud services with the direction of Formula Systems’ software-services revenue when Formula reports later. Stronger demand would suggest large organizations are still funding work Formula also sells; weaker demand could point to tighter customer budgets. The companies have different business mixes and markets, so this is a demand signal, not Formula’s result.
Amdocs Limited earningsDOX
Amdocs’s cloud and managed-service work for telecom customers offers a read on demand for services Formula Systems provides to major global telecom companies.
Look at demand for Amdocs’s cloud and managed services for telecom customers, then compare it with Formula Systems’ overall software-services results when Formula reports later. Strength would suggest telecom companies are still buying work Formula also provides; weakness would point to possible pressure in that customer market, but would not prove Formula’s telecom business moved the same way.
CI&T Inc earningsCINT
CI&T competes with Formula Systems’ Magic business in North American software development and maintenance, so its report shows how demand and competition are moving in that overlapping market.
Look at CI&T’s North American revenue and signs of client growth; the region accounted for 43.4% of its 2025 revenue. Growth would show buyers are still paying for software development and maintenance that Magic also provides, while showing a competitor gaining ground. Weakness could reflect softer demand or CI&T-specific execution, not an automatic opportunity for Magic.
Formula Systems 1985 Ltd earningsThis company
Formula Systems earns most of its revenue from software services, so this report will show whether those businesses turn revenue into operating profit and cash.
Read software-services revenue growth alongside operating margin—the share of revenue left after operating costs—and cash generated by operations. If revenue grows while margins and cash hold or rise, Formula Systems’ delivery business is scaling; if revenue grows but margins fall or operating cash weakens, costs may be eating into profit or cash may be arriving more slowly, so sales growth alone overstates the business’s strength.
