logo
Strong Cloud Subscription Aids PEGA's Prospects: What's More to Come?

Strong Cloud Subscription Aids PEGA's Prospects: What's More to Come?

Yahoo5 days ago
Pegasystems PEGA expects strong traction in its cloud-subscription business to continue, which is increasingly driving overall cloud growth. Key initiatives to sustain this momentum include a 5-year strategic collaboration with Amazon's cloud arm, Amazon Web Services (AWS), as PEGA intends to capitalize on major market trends, including AI, legacy transformation and cloud migration.In second-quarter 2025, PEGA's cloud revenues surged 24% year over year to $166.7 million, driven by increasing adoption as clients continued migrating from legacy systems to its cloud-native solutions. The company's Cloud Annual Contract Value (ACV) increased 28% year over year to $761 million. This robust cloud momentum underscores the increasing impact of subscription revenues on PEGA's overall performance.The company's Gen-AI-powered Blueprint plays a pivotal role in client base expansion. Its latest integration of Amazon's AWS Transform product is expected to allow enterprises to modernize legacy systems without disruption, directly feeding demand for Pega Cloud. The availability of the PEGA software on AWS Marketplace will improve accessibility and streamline client onboarding. Each incremental dollar of ACV is expected to boost subscription billings, creating a scalable and predictable revenue stream for the company. The Zacks Consensus Estimate for PEGA's third-quarter 2025 cloud revenues is pegged at $180 million, indicating a 25% year-over-year growth.PEGA's Public Sector positioning has strengthened with its FedRAMP High certification, a United States government security standard for cloud services, aligning with the government's push toward cloud adoption and AI-driven digital transformation. With a 28% growth in current backlog expected to convert to revenue, Pegasystems' cloud subscriptions remain a key driver of top-line growth.
PEGA Faces Intense Competition in Cloud Subscriptions
Pegasystems faces stiff competition from players like Salesforce CRM and ServiceNow NOWSalesforce offers its cloud-native CRM platform with an expanded suite of generative-AI tools through its AI Cloud offering. The company recently introduced Marketing Cloud Next, a major evolution of its marketing solution that uses Autonomous AI agents to enable personalized customer engagements at scale. Salesforce's industry-focused solutions like Life Sciences Cloud and Agentforce strengthen its position in delivering AI-powered, data-driven engagement through the cloud.ServiceNow, through its cloud-based platform, empowers enterprises to digitize workflows, serving more than 85% of Fortune 500 companies. NOW recently announced a partnership with the Ferrari Hypercar team as its official platform provider, deploying its AI-powered platform to streamline real-time race operations and IT workflows across its global divisions. With third-quarter 2025 subscription revenues projected between $3.260 billion and $3.265 billion, ServiceNow maintains a strong competitive edge in delivering enterprise workflow automation.
PEGA's Share Price Performance, Valuation, and Estimates
Pegasystems shares have appreciated 29.5% in the year-to-date period, outperforming the Zacks Computer and Technology sector's return of 11.2%.
PEGA's YTD Price Performance
Image Source: Zacks Investment Research
PEGA stock is currently trading at a discount, with a forward 12-month Price/Sales of 5.98X compared to the industry's 8.99X. PEGA has a Value Score of F.
PEGA Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for PEGA's 2025 earnings is pegged at $1.98 per share, up 5.3% over the past 30 days, suggesting 31.13% year-over-year growth.
Pegasystems Inc. Price and Consensus
Pegasystems Inc. price-consensus-chart | Pegasystems Inc. Quote
PEGA currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Salesforce Inc. (CRM) : Free Stock Analysis Report
ServiceNow, Inc. (NOW) : Free Stock Analysis Report
Pegasystems Inc. (PEGA) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

G2 and AWS Expand Partnership to Create Frictionless Software Buying Experience with Generative AI-Powered Insights
G2 and AWS Expand Partnership to Create Frictionless Software Buying Experience with Generative AI-Powered Insights

Business Wire

time27 minutes ago

  • Business Wire

G2 and AWS Expand Partnership to Create Frictionless Software Buying Experience with Generative AI-Powered Insights

CHICAGO--(BUSINESS WIRE)-- G2 today announced a renewed and expanded four-year relationship with Amazon Web Services. The collaboration will expand the integration of G2 content into AWS Marketplace to fuel AI-powered experiences, including generative AI product comparison insights across AWS Marketplace listings. 'We're proud to deepen our collaboration with AWS, building a more connected and intelligent software buying journey across G2 and AWS Marketplace,' said Godard Abel, Co-Founder and CEO of G2. G2 and AWS Marketplace already ingest more than 20,000 user reviews for products available in AWS Marketplace. G2 content will now be among the data sources used to power product insights in AWS Marketplace, supporting new generative AI-powered insights built using Amazon Bedrock. This includes surfacing key customer sentiment from over 3 million authentic reviews on G2 and summarizing them in AWS Marketplace for easy side-by-side product comparisons, enabling buyers to quickly understand a product's strengths and considerations at a glance. 'We're constantly innovating to make AWS Marketplace the best destination for customers to find, procure, and deploy the IT solutions they need," said Matt Yanchyshyn, VP, AWS Marketplace and Partner Services at AWS. "Our expanded collaboration with G2 enhances the customer experience by integrating authentic peer reviews with generative AI-powered insights, simplifying the purchase decision-making process. This represents our commitment to creating more intuitive and efficient experiences that help customers accelerate innovation." Enriching the AWS Marketplace Buyer Experience As software buyers increasingly rely on community-driven validation and self-service evaluation, this collaboration provides them with the information needed to decide on the right product and then transact directly in AWS Marketplace. G2-powered enhancements in AWS Marketplace include: AI-generated, side-by-side product comparisons, which surface key product themes, customer sentiment, and differentiated strengths based on millions of verified reviews Rich, contextual product content powered by G2's trusted taxonomy and user insights to streamline evaluation and comparison Syndication of G2 Reviews and Ratings to software listings across AWS Marketplace Frictionless buyer journeys, enabling AWS users to move confidently from research to purchase with fewer steps 'We're proud to deepen our collaboration with AWS, building a more connected and intelligent software buying journey across G2 and AWS Marketplace,' said Godard Abel, Co-Founder and CEO of G2. 'By combining trusted peer voices with AI-driven insights, we're not only accelerating decision-making for buyers, but also laying the groundwork for a future where software discovery is seamless, personalized, and community-powered — in all the places customers are.' Empowering Vendors and Buyers Alike Software vendors listed on both G2 and AWS Marketplace will benefit from increased visibility, credibility, and accelerated conversion. By extending their reach in AWS Marketplace with validated user insights and generative AI-enriched content, vendors can better differentiate their offerings and guide prospective buyers through the purchasing process. G2's unique review sourcing approach — including conversational voice reviews and direct meeting-to-review conversions — ensures vendors can achieve both review recency and quality. This deepened relationship reinforces G2's vision to make software buying smarter, faster, and more transparent — setting the foundation for further innovation across the digital procurement experience. Learn more about how to maximize the benefits of this expanded AWS and G2 integration. About G2 G2 is the world's largest and most trusted software marketplace. More than 100 million people annually — including employees at all Fortune 500 companies — use G2 to make smarter software decisions based on authentic peer reviews. Thousands of software and services companies of all sizes partner with G2 to build their reputation and grow their business — including Salesforce, HubSpot, Zoom, and Adobe. To learn more about where you go for software, visit and follow us on LinkedIn.

Samsung's 27-Inch Curved Gaming Monitor Is Cheaper on Amazon Than on Samsung's Own Site
Samsung's 27-Inch Curved Gaming Monitor Is Cheaper on Amazon Than on Samsung's Own Site

Gizmodo

time27 minutes ago

  • Gizmodo

Samsung's 27-Inch Curved Gaming Monitor Is Cheaper on Amazon Than on Samsung's Own Site

If you've spent all of your money on a fantastic gaming PC and have just realized you also need to get a monitor as well, then you might have the fear setting in. Don't let it in though, because you can find some really good gaming monitors out there which are actually reasonably priced, and better yet, on sale. Right now, Amazon has an excellent deal on that means you can pick up this Samsung 27-inch S39C Curved Gaming Monitor for just $140. That's 39% off the normal price of $230, and that's a very solid amount of money off. This deal won't last forever though, so if you do decide you want it, make sure you buy it quickly to avoid missing out. See at Amazon Gaming monitors excel in a few different ways. The main thing a lot of them have going for them isn't actually about the quality of the visuals, but the speed of them. It's really important that you can see more frames to succeed when it comes to competitive gaming, which is why a good refresh rate is so important, but it's also important that the latency isn't too high, or you'll feel input lag all the time. This gaming monitor has a sizeable 27-inch screen with full HD visuals to help you stay properly immersed. The 75Hz refresh rate means that you'll be able to see up to 75 frames per second has well, which is enough for all but the most hardcore gamers out there. It has a fairly low response rate of four milliseconds too, so you'll get a really good feeling of responsiveness from your games. Along with that, it has a bunch of features which really help it perform well here. Along with AMD FreeSync to make sure your monitor can figure out the right settings, it also has Game Mode for boosted performance, a frameless design to reduce the overall clunkiness of the monitor, and built-in speakers. That last one can be a huge win, especially given how many of us usually end up just turning up some headphones and hoping for the best. This monitor is a solid pickup at $230, but at $140, this is a great purchase for those looking for a solid monitor that's not going to cost them an arm and a leg. It's got enough power for just about anything you could want from it, so make the most of this deal quickly. See at Amazon

In Ecuador, environmentalists worry Noboa is unwinding nation's green reputation
In Ecuador, environmentalists worry Noboa is unwinding nation's green reputation

Associated Press

time28 minutes ago

  • Associated Press

In Ecuador, environmentalists worry Noboa is unwinding nation's green reputation

BOGOTA, Colombia (AP) — When Ecuadorians voted two years ago to block oil drilling in Yasuni National Park, it was a triumph for environmentalists seeking to protect one of the most biodiverse places on Earth. And it was in character for a country that was first to enshrine the 'rights of nature' in its constitution and is home to parts of the Amazon rain forest and the Galápagos Islands. But recent moves by President Daniel Noboa have alarmed environmentalists and Indigenous leaders who say the country's green reputation — and its protections for civil society — are unraveling. Noboa's administration has moved to scrap the country's independent Environment Ministry. It's pushing legislation ostensibly aimed at choking off illegal mining, but which critics fear will devastate nonprofits. The National Assembly — pressed by Noboa — approved a law last month allowing private and foreign entities to co‑manage conservation zones that critics say weakens protections and threatens Indigenous land rights. And Ecuador just signed a new oil deal with Peru that could accelerate drilling in sensitive areas. Natalia Greene, an environmental advocate with the Global Alliance for the Rights of Nature, said Noboa's decision to fold the Environment Ministry into the Ministry of Energy and Mines will speed up mining just as Ecuador is grappling with a surge in illegal gold mining tied to organized crime. She called it 'like putting the wolf in charge of the sheep.' 'The government's intention is very clear — to be a machine gun of extractivism,' she said. Noboa has defended the ministry moves and other changes as necessary to cut costs, reduce bureaucracy and address Ecuador's financial crisis. Officials argue that consolidating ministries will make decision‑making more efficient. Neither the Ministry of Energy and Mines nor Noboa's office responded to questions from The Associated Press. Indigenous rights at risk In July, Peru and Ecuador signed a deal for Ecuador's state oil company to sell crude directly to Petroperu and link its southern Amazon reserves to Peru's Norperuano pipeline, with drilling eyed for January 2026. Environmental groups say it could fast‑track drilling in sensitive areas while skirting safeguards and Indigenous consultation. Peru's Achuar, Wampis and Chapra nations denounced the plan in a public letter, saying it would gut long-standing protections that require communities be consulted before projects move forward on their lands. They warned the pipeline already averages 146 spills a year and that expanding it would be 'a grave threat to the Amazon and to Indigenous livelihoods.' 'They are going to violate all our rights to enter our territories and extract the resources they want,' said Nemo Guiquita, a Waorani leader with the Confederation of Indigenous Nationalities of the Ecuadorian Amazon. She said Indigenous communities fear a surge of oil and mining projects across ancestral lands, threatening both ecosystems and livelihoods. 'There will be a weakening of environmental protection,' she said. 'There will be a lot of deforestation, contamination of rivers and destruction of the ecosystem, which is vital for our existence as Indigenous peoples.' Ricardo Buitrón, president of the Quito‑based environmental group Accion Ecologica, noted that the changes come just months after Ecuadorians voted to keep oil in the ground in Yasuni, a decision the government has yet to fully enforce. 'We have gone back decades,' he said. 'A development model is being prioritized that does not care about protecting ecosystems, but about extracting natural resources to the maximum.' Fears that proposed law will harm non-governmental organizationsThe proposed law that has alarmed nonprofits is formally called the Organic Law for the Control of Irregular Capital Flows. But activists call it the 'anti-NGO' law, saying it could impose heavy burdens on nonprofits and force many to close. The measure applies to more than 71,000 organizations nationwide, giving them six months to re‑register with the government, submit detailed financial records and disclose foreign funding sources. The government says the law is needed to prevent money laundering and political destabilization. Critics warn it could instead silence dissent by placing organizations under sweeping controls. Noboa submitted the bill to the National Assembly on July 29, giving lawmakers until Aug. 28 to act before it automatically becomes law. 'This has been hard for us,' Guiquita said. 'Practically, Indigenous organizations live mostly from donations and NGOs. The government is weakening us in every space.' 'It represents a threat because they could dissolve us under any pretext,' Buitrón said. 'This reminds us of what we already lived through a decade ago, when they tried to shut down some organizations in the country.' Regional and global stakes Kevin Koenig of Amazon Watch, a U.S.-based nonprofit that advocates for Indigenous rights and environmental protection in the Amazon, said the country's changes are part of a wider rollback. 'We are seeing a sweeping package of regressive reforms that are rolling back environmental protections, Indigenous rights guarantees, and threatening basic civil liberties like the freedom of speech and assembly,' he said. 'What it suggests is the massive expansion of oil and mining, particularly in the Amazon region.' Koenig said the changes send troubling signals ahead of COP30, the United Nations climate summit set for Brazil later this year. Similar trends are unfolding in Peru and El Salvador, where governments have limited environmental oversight, and in Brazil, where licensing for Amazon projects has been weakened. Mobilizing resistance Civil society groups are mobilizing against the changes. Greene said organizations have reactivated the Asamblea Nacional Socioambiental, a national coalition of environmental and social movements, and are planning legal challenges, demonstrations and appeals to international bodies. Many fear Ecuador's role as a global green pioneer is unraveling. 'Our only crime here has been protecting our territory, protecting our traditions, protecting our way of life,' Guiquita said. ___ The Associated Press' climate and environmental coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP's standards for working with philanthropies, a list of supporters and funded coverage areas at

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store