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Yahoo
5 days ago
- Business
- Yahoo
ServiceNow vs. Pegasystems: Which Workflow Automation Stock Leads Now?
ServiceNow NOW and Pegasystems PEGA are major players in the workflow automation sector, offering enterprise solutions that streamline business processes through automation and AI integration. While NOW's integration of AI into its platform has boosted adoption and performance, solidifying its role in digital transformation, PEGA has advanced its platform with tools like Pega Gen AI Blueprint to optimize application workflows and enhance customer the Mordor Intelligence report, the workflow automation market size is projected to be valued at $23.77 billion in 2025, and is expected to reach $37.45 billion by 2030, witnessing a CAGR of 9.52% during the forecast period from 2025 to 2030. NOW and PEGA are likely to benefit from the significant growth opportunity highlighted by the rapid pace of or PEGA — Which of these workflow automation stocks has the greater upside potential? Let's find out. ServiceNow has been benefiting from the rising adoption of its workflows by enterprises undergoing digital transformation.A strong and frequently updated portfolio is helping ServiceNow win customers on a regular basis. NOW had 72 transactions of more than $1 million in net new annual contract value (ACV) in the first quarter of 2025. The company expanded its customer relationships, reaching 508 customers with more than $5 million in ACV at the end of the reported quarter, which represents 20% year-over-year customer expanding portfolio has been noteworthy. In May 2025, ServiceNow introduced its Core Business Suite, an AI-powered solution designed to streamline and transform core business operations, including HR, finance, procurement, facilities, and legal, by unifying workflows and automating processes across departments to improve efficiency, reduce time to value, and enhance employee rich partner base, which includes the likes of Amazon, Microsoft, NVIDIA, Five9, Visa, Snowflake, Zoom, Siemens, Rimini Street, IBM, Genesys, Fujitsu, Equinix, Boomi and Infosys, is a key catalyst for future prospects. Pegasystems is benefiting from strong demand for its GenAI Blueprint solution, which is an agent that uses AI to combine the company's best practices, as well as clients' and partners' knowledge, to design enterprise workflow applications. More than 1,000 new Blueprints are being created every week, more than double from a few months on this momentum, PEGA recently expanded its PEGA Blueprint platform with advanced agentic AI capabilities to accelerate digital transformation by analyzing and converting legacy system assets into modern cloud-ready applications. The latest announcement streamlines legacy analysis, enabling faster, more informed application also announced Powered by Pega Blueprint, a solution enabling system integrators to integrate their own intellectual property and industry expertise into Pega's AI-driven workflow designer. This helps partners deliver faster, more customized enterprise transformation and drive greater client success. PEGA's Gen AI blueprint is being widely adopted by tech giants like Accenture, Cognizant, Infosys, Capgemini, TCS and Wipro for client engagements. In first-quarter 2025, PEGA saw a 13% year-over-year rise in ACV to $1.45 billion, driven by strong demand for Pega GenAI Blueprint. In the year-to-date period, NOW shares have lost 4.5% while PEGA shares have gained 4%. NOW's share price has declined due to increasing macroeconomic challenges and uncertainty attributed to higher tariffs. The increase in PEGA's shares can be attributed to its expanding portfolio and the growing popularity of its Gen AI Blueprint. Image Source: Zacks Investment Research Valuation-wise, NOW and PEGA shares are currently overvalued as suggested by a Value Score of F and D, terms of the forward 12-month Price/Sales, NOW shares are trading at 14.95X, which is higher than PEGA's 5.04X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for NOW's 2025 earnings is pegged at $16.51 per share, which has increased 0.18% over the past 30 days, indicating an 18.61% rise year over year. ServiceNow, Inc. price-consensus-chart | ServiceNow, Inc. Quote The Zacks Consensus Estimate for PEGA's 2025 earnings is pegged at $3.30 per share, which has remained unchanged over the past 30 days, indicating an 8.91% increase year over year. Pegasystems Inc. price-consensus-chart | Pegasystems Inc. Quote NOW's earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an average surprise of 6.61%. PEGA's earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an average surprise of 94.01%. The average surprise of PEGA is higher than that of NOW. While both NOW and PEGA stand to benefit from the growing workflow automation sector, PEGA offers greater upside potential with its rising adoption of GenAI Blueprint, strong partner engagement, and higher earnings surprise history, driving impressive growth and client robust AI portfolio and strong partner base are expected to drive its clientele. However, unfavorable forex amid a challenging macroeconomic environment, stiff competition and lingering concerns related to tariffs are a PEGA carries a Zacks Rank #2 (Buy), making the stock a stronger pick than NOW, which has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) 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 ServiceNow, Inc. (NOW) : Free Stock Analysis Report Pegasystems Inc. (PEGA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
28-05-2025
- Business
- Yahoo
PEGA Rises 5% in a Month: Is the Stock a Must Have for Your Portfolio?
Pegasystems PEGA shares have climbed 5.4% in a month, underperforming the broader Zacks Computer and Technology sector and Zacks Computer Software industry's appreciation of 8.8% and 12.4%, shares are suffering from stiff competition in the enterprise automation space from the likes of ServiceNow NOW, Oracle ORCL and Microsoft MSFT. Over the past month, Pegasystems shares have underperformed Microsoft, ServiceNow and Oracle's appreciation of 15.1%, 11.3% and 7.1%, respectively. Pegasystems is benefiting from strong demand for its GenAI Blueprint solution. Blueprint is an agent that leverages AI to combine the company's best practices as well as clients' and partners' knowledge to design enterprise workflow applications. Pega Blueprint is faster as compared with the traditional app design process. PEGA's Gen AI blueprint is being widely adopted by tech giants like Accenture, Cognizant, Infosys, Capgemini, TCS and Wipro for client engagements. PEGA's initiative to add new features strengthens Blueprint's capability. Users can now interact with Blueprint workflows or even chat with them in phone calls. Being an agentic AI, Blueprint can create a new account or fix a bad charge on users' statements. Pegasystems notes that more than 1000 new Blueprints are now being created weekly using GenAI Blueprint. The launch of the Blueprint for Government Efficiency Toolkit is a noteworthy development in this regard. Pegasystems Inc. price-consensus-chart | Pegasystems Inc. Quote PEGA's Customer Decision Hub (CDH), which uses statistical AI and predictive analytics to enable personalized interactions, has been a key catalyst. With the help of CDH, enterprises are able to deliver context-based customer interactions and are generating automatic next-best actions across channels. As enterprises remain keen on adopting AI, a deeper penetration of the company's products is expected to drive its top-line growth. In first-quarter 2025, PEGA saw a 13% year-over-year rise in annual contract value (ACV) to $1.45 billion. It noted 23% year-on-year growth in Cloud ACV to $701 million. Revenues for the first quarter of 2025 increased 44% year over year to $475.6 million, beating the Zacks Consensus Estimate by 33.6%. The Zacks Consensus Estimate for 2025 earnings is currently pegged at $3.26 per share, up 5.2% over the past 60 days and indicating 7.59% growth from the figure reported in 2024. The consensus mark for 2025 revenues is pegged at $1.61 billion, indicating 7.35% growth over 2024's reported figure. Although PEGA shares have underperformed industry and peers in the past month, we believe an innovative portfolio makes the stock attractive for investors in the near term. Pegasystems currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) 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 Microsoft Corporation (MSFT) : Free Stock Analysis Report Oracle Corporation (ORCL) : 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 Investment Research
