Pegasystems Q4 revenue and EPS beat estimates

Reuters
02/11
Pegasystems Q4 revenue and EPS beat estimates

Overview

  • Enterprise transformation firm's Q4 revenue beat analyst expectations

  • Adjusted EPS for Q4 beat analyst expectations

Outlook

  • Pegasystems expects 2026 ACV growth of 15%

  • Pegasystems forecasts 2026 cash flow from operations at $595 mln

Result Drivers

  • ACV GROWTH - Pegasystems reported a 17% year-over-year increase in Annual Contract Value, driven by strong execution and innovation

  • CLOUD ACV INCREASE - Pega Cloud ACV rose 33% year-over-year, reflecting increased demand for cloud solutions

  • CASH FLOW IMPROVEMENT - Cash flow from operations and free cash flow grew 45% year-over-year, indicating strong financial management

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Revenue

Beat

$504.32 mln

$494.29 mln (10 Analysts)

Q4 Adjusted EPS

Beat

$0.76

$0.74 (10 Analysts)

Q4 Adjusted Net Income

Beat

$139.55 mln

$134.83 mln (10 Analysts)

Q4 Net Income

$234.57 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the software peer group is "buy"

  • Wall Street's median 12-month price target for Pegasystems Inc is $74.50, about 78.1% above its February 9 closing price of $41.84

  • The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 29 three months ago

Press Release: ID:nBw9VQQtJa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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