Pegasystems Inc (PEGA) Earnings Surpass Expectations with Robust Q3 Revenue Growth

Pegasystems Inc on Smartkarma

Analysts on Smartkarma have provided favorable coverage of Pegasystems Inc (PEGA) in recent reports. Value Investors Club highlighted Pegasystems’ improved performance, with over 95% gross-dollar retention and a strong customer base that includes major banks and federal agencies. The transition to cloud services, accounting for over 50% of the annual contract value, has been successful. In Q1 2025, Pegasystems reported $202 million in free cash flow and announced a $500 million buyback, showcasing a solid financial position. The analysts at Value Investors Club have a bullish sentiment towards Pegasystems.

Baptista Research also shared optimistic insights, praising Pegasystems’ second-quarter 2025 financial performance. The company’s implementation of its AI strategy has had positive effects on revenue and customer engagement. Of note is the annual contract value (ACV) growth, which increased by 16% year-over-year and 14% in constant currency. Pegasystems’ strong performance in the first quarter of 2025, as noted by Baptista Research, was driven by significant ACV growth and impressive cash flow results, largely attributed to the robust adoption of the Pega GenAI Blueprint. The analysts at Baptista Research maintain a bullish sentiment, indicating confidence in Pegasystems’ future prospects.

A look at Pegasystems Inc Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Pegasystems Inc, a company that develops customer relationship management software, has been assigned Smartkarma Smart Scores in various categories to evaluate its long-term prospects. With a Growth score of 4 and Resilience score of 4, the company is positioned well for future expansion and the ability to weather economic uncertainties. This indicates a positive outlook for Pegasystems Inc in terms of its ability to grow and adapt to challenges.

Although the Value and Dividend scores are lower at 2 each, suggesting room for improvement in these areas, the Momentum score of 3 hints at a steady performance. Overall, Pegasystems Inc appears to have strong potential for growth and resilience in the market, making it a company to watch for investors seeking opportunities in the software development sector.

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