Appian Corporation (APPN): A Bull Case Theory 

We came across a bullish thesis on Appian Corporation on Valueinvestorsclub.com by MississippiCo. In this article, we will summarize the bulls’ thesis on APPN. Appian Corporation’s share was trading at $30.21 as of January 28th. APPN’s forward P/E was 416.67 according to Yahoo Finance.

Appian Corporation operates as a software company in the United States and internationally. APPN presents a highly compelling investment opportunity, supported by its core process automation software business, strong AI integration capabilities, and potential upside from ongoing litigation.

The company delivers a unified low-code platform that integrates process automation, AI, and enterprise data, enabling organizations to orchestrate complex workflows with compliance and auditability. Its software addresses critical challenges in deploying generative and agentic AI, such as brittle workflows, lack of contextual learning, and misalignment with day-to-day operations, giving Appian a distinct advantage in enterprise AI adoption.

Over 50% of new deals in 2025 already include AI agent integration, reflecting Appian’s leadership in monetizing AI deployment. Even absent AI upside, Appian’s core business is robust and mission-critical, demonstrating extraordinary retention (>95% gross retention) and consistent revenue growth, with cloud software revenue up 21% YoY and total software revenue up 17% YoY. The company is also executing impressive operating leverage initiatives, with >1,300 bps of LTM operating margin expansion while maintaining growth, and GAAP gross margins exceeding 75%, highlighting substantial room for continued improvement.

Market narratives around seat-based software and low-code relevance are largely inapplicable to Appian, as its enterprise-grade process automation remains sticky, highly customized, and resistant to commoditization. Additionally, Appian benefits from potential proceeds from its $2 billion trade secrets lawsuit against Pegasystems, including a guaranteed $500 million via Judgement Preservation Insurance, which could materially enhance shareholder value. With multiple near-term catalysts, including Q3 and Q4 earnings, potential analyst day disclosures, AI adoption tailwinds, and legal resolution, Appian offers a rare risk/reward profile, combining ongoing margin expansion, high-growth software fundamentals, and optionality from litigation upside.

Previously we covered a bullish thesis on ServiceNow, Inc. (NOW) by Compounding Your Wealth in April 2025, which highlighted the company’s strong workflow automation platform, AI integration, high customer stickiness, and robust revenue growth. The company’s stock price has depreciated by 18.96% since our coverage (adjusted for 5 for 1 stock split in December 2025). The thesis still stands as ServiceNow benefits from digital transformation trends. MississippiCo shares a similar perspective but emphasizes Appian’s strengths in process automation, compliance, and potential litigation upside.

Appian Corporation is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held APPN at the end of the third quarter which was 30 in the previous quarter. While we acknowledge the risk and potential of APPN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than APPN and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.