Latest news with #PegaCloud
Yahoo
30-07-2025
- Business
- Yahoo
Strong Cloud Subscription Aids PEGA's Prospects: What's More to Come?
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 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 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 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 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 Investment Research
Globe and Mail
28-07-2025
- Business
- Globe and Mail
Pega Launches Pega Cloud, Hosted by Google Cloud, in the Kingdom of Saudi Arabia
Pegasystems Inc. (NASDAQ: PEGA), the Enterprise Transformation Company™, today announced that Pega Cloud® is now available as a service hosted on Google Cloud in the Kingdom of Saudi Arabia. This strategic deployment enables customers in the Kingdom to leverage Pega's industry-leading capabilities while supporting data residency requirements within Saudi Arabia's borders. This will directly support the government's Vision 2030 initiative to establish the Kingdom as a regional technology hub. The availability of Pega Cloud on Google Cloud in Saudi Arabia addresses the growing demand for cloud-based software solutions as part of the Kingdom's ambitious digital transformation agenda. With the Saudi Arabian Information and Communications Technology (ICT) market valued at approximately $48 billion and growing at 15-16% compound annual growth rate, this expansion demonstrates Pega's commitment to supporting the country's technological advancement and economic diversification goals. As an enterprise AI decisioning and workflow automation platform, Pega delivers business-transforming value by partnering with the world's largest organisations to Build for Change®. The introduction of Pega Cloud on Google Cloud in Saudi Arabia extends this capability to local enterprises seeking to modernise their operations. Key Benefits of Pega Cloud on Google Cloud: Build and evolve mission-critical Pega applications with enterprise-grade cloud services that meet the most demanding security and performance requirements Drive greater value from Pega solutions with up-to-date services and access to Pega's latest capabilities, ensuring continuous innovation and competitive advantage Deliver better business outcomes faster with centralized Pega operations management, reducing time to market and operational complexity Innovate faster with Pega Agentic AI powering revolutionary design-time tools like Pega Blueprint, allowing for accelerated ideation to production timelines. The announcement aligns with Pega's recognition as a leader in the Forrester Wave for AI Decisioning Platforms, where the company achieved a perfect score on strategy. This industry recognition underscores Pega's position at the forefront of enterprise automation and AI-driven decision-making capabilities. Pega Cloud on Google Cloud provides customers with a fully managed cloud service that reduces time to market, improves planning and cost efficiency, and delivers enterprise-grade security. The service includes 24/7 global and regional support, operational system monitoring, and fault-tolerant environments with multi-layer redundancy, ensuring that mission-critical applications remain available and high-performing. The company's extensive compliance certifications and adherence to international standards provide customers with confidence in their data security management. Quotes & Commentary "This expansion represents our ongoing commitment to existing clients in Saudi Arabia and our dedication to supporting new customers as they embark on their digital transformation journeys," said Karim Zein, VP & managing director, EMEA West Pega. "By making Pega Cloud available on Google Cloud in the Kingdom, we're enabling organisations to harness the power of enterprise AI and workflow automation plus meeting their data residency and compliance requirements." Supporting Resources About Pegasystems Pega is The Enterprise Transformation Company that helps organizations Build for Change® with enterprise AI decisioning and workflow automation. Many of the world's most influential businesses rely on our platform to solve their most pressing challenges, from personalizing engagement to automating service to streamlining operations. Since 1983, we've built our scalable and flexible architecture to help enterprises meet today's customer demands while continuously transforming for tomorrow. For more information on Pega, visit
Yahoo
24-07-2025
- Business
- Yahoo
Pegasystems (PEGA) Stock Trades Up, Here Is Why
What Happened? Shares of enterprise workflow software provider Pegasystems (NASDAQ:PEGA) jumped 9.9% in the afternoon session after the company reported strong second-quarter financial results that surpassed analyst expectations and raising its full-year outlook. The business software company announced revenue of $384.5 million and adjusted earnings of $0.28 per share, both of which came in ahead of Wall Street forecasts. Growth was driven by a significant increase in its Pega Cloud division, as Annual Contract Value (ACV), a key subscription metric, rose 16% year-over-year to $1.51 billion. The company's focus on AI-powered workflow automation tools for large enterprises appeared to be paying off. The strong performance prompted management to lift its financial forecast for the full year, signaling confidence in sustained demand. Following the report, several Wall Street analysts reiterated their positive ratings on the stock, citing the robust cloud momentum and improved profitability outlook. Is now the time to buy Pegasystems? Access our full analysis report here, it's free. What Is The Market Telling Us Pegasystems's shares are somewhat volatile and have had 14 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The biggest move we wrote about over the last year was 3 months ago when the stock gained 32.6% on the news that the company reported strong first-quarter 2025 results that significantly exceeded analysts' expectations on both revenue and EPS. Total revenue growth was underpinned by a 23% increase in Pega Cloud annual contract value and a 21% jump in backlog, both suggesting sustained momentum in client demand and deeper customer commitments. Zooming out, we think this was a solid quarter. Pegasystems is up 18.9% since the beginning of the year, and at $55.25 per share, it is trading close to its 52-week high of $56.15 from January 2025. Investors who bought $1,000 worth of Pegasystems's shares 5 years ago would now be looking at an investment worth $1,065. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
23-07-2025
- Business
- Yahoo
Pegasystems (NASDAQ:PEGA) Reports Upbeat Q2 But Stock Drops 11%
Enterprise workflow software provider Pegasystems (NASDAQ:PEGA) beat Wall Street's revenue expectations in Q2 CY2025, with sales up 9.5% year on year to $384.5 million. Its non-GAAP profit of $0.28 per share was 18.2% above analysts' consensus estimates. Is now the time to buy Pegasystems? Find out in our full research report. Pegasystems (PEGA) Q2 CY2025 Highlights: Pega Cloud ACV and total ACV beat Pega Cloud Backlog and total Backlog beat Subscription revenue (services + licenses) beat but growth decelerated meaningfully from last quarter Revenue: $384.5 million vs analyst estimates of $363.1 million (9.5% year-on-year growth, 5.9% beat) Adjusted EPS: $0.28 vs analyst estimates of $0.24 (18.2% beat) Operating Margin: 4.5%, in line with the same quarter last year Free Cash Flow Margin: 21.9%, down from 42.5% in the previous quarter Market Capitalization: $8.79 billion 'Our unique approach to AI was a key driver of our strong first half results,' said Alan Trefler, Pega founder and CEO. Company Overview Founded by Alan Trefler in 1983, Pegasystems (NASDAQ:PEGA) offers a software-as-a-service platform to automate and optimize workflows in customer service and engagement. Revenue Growth A company's long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last three years, Pegasystems grew its sales at a 11.1% annual rate. Although this growth is acceptable on an absolute basis, it fell short of our standards for the software sector, which enjoys a number of secular tailwinds. This quarter, Pegasystems reported year-on-year revenue growth of 9.5%, and its $384.5 million of revenue exceeded Wall Street's estimates by 5.9%. Looking ahead, sell-side analysts expect revenue to grow 2% over the next 12 months, a deceleration versus the last three years. This projection doesn't excite us and suggests its products and services will face some demand challenges. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Customer Acquisition Efficiency The customer acquisition cost (CAC) payback period measures the months a company needs to recoup the money spent on acquiring a new customer. This metric helps assess how quickly a business can break even on its sales and marketing investments. Pegasystems's recent customer acquisition efforts haven't yielded returns as its CAC payback period was negative this quarter, meaning its incremental sales and marketing investments outpaced its revenue. The company's inefficiency indicates it operates in a highly competitive environment where there is little differentiation between Pegasystems's products and its peers. Key Takeaways from Pegasystems's Q2 Results We enjoyed seeing Pegasystems beat analysts' revenue and EPS expectations this quarter. Zooming out, we think this quarter featured some important positives. Investors were likely hoping for more, and shares traded down 11% to $45.35 immediately following the results. So should you invest in Pegasystems right now? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free.
Yahoo
20-05-2025
- Business
- Yahoo
Why Is Pegasystems (PEGA) Stock Soaring Today
Shares of enterprise workflow software provider Pegasystems (NASDAQ:PEGA) jumped 5.5% in the morning session after S&P Dow Jones Indices announced the company would be added to the S&P MidCap 400 before trading opens on Thursday, May 22, 2025. Being included in the index means that Pegasystems will likely be held by many mutual funds and ETFs, which could potentially drive up demand for the stock. We note that while buying of the stock could increase, this development does not change the fundamentals of the company. Revenue growth, expense efficiency, and capital intensity of the business, for instance, are not impacted by index inclusion or exclusion, so this is more of a technical tailwind for the stock. Is now the time to buy Pegasystems? Access our full analysis report here, it's free. Pegasystems's shares are somewhat volatile and have had 14 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The previous big move we wrote about was 27 days ago when the stock gained 32.6% on the news that the company reported strong first-quarter 2025 results that significantly exceeded analysts' expectations on both revenue and EPS. Sales growth was underpinned by a 23% increase in Pega Cloud annual contract value and a 21% jump in backlog, both suggesting sustained momentum in client demand and deeper customer commitments. Zooming out, we think this was a solid quarter. Pegasystems is up 11.4% since the beginning of the year, and at $103.57 per share, it is trading close to its 52-week high of $112.29 from January 2025. Investors who bought $1,000 worth of Pegasystems's shares 5 years ago would now be looking at an investment worth $1,155. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
