Shares of Pegasystems (PEGA) surged 10.48% in a 24-hour period, following the release of its impressive third-quarter 2025 financial results. The company, known for its customer relationship management (CRM) software, significantly outperformed analyst expectations across key metrics, demonstrating the success of its AI-driven strategy and strong growth in cloud services.

Pegasystems reported adjusted earnings per share of $0.30, surpassing the FactSet analyst consensus of $0.20 by 50%. This represents a substantial improvement from the $0.20 per share reported in the same quarter last year. Revenue for the quarter reached $381.4 million, up 17.32% from $325.1 million a year earlier and well above the analyst estimates of $345.2 million. The company's Annual Contract Value (ACV) increased by 14% year-over-year, with Pega Cloud ACV showing an impressive 27% rise compared to the previous year.

CEO Alan Trefler attributed the success to Pegasystems' "differentiated AI strategy," which continues to resonate with clients by enhancing speed, predictability, and scale in enterprise applications. The strong performance was further underscored by a 38% year-over-year improvement in both cash flow from operations and free cash flow, demonstrating enhanced operational efficiency. With this robust financial performance and strategic focus on AI and cloud solutions, Pegasystems appears well-positioned to maintain its strong market position in the competitive CRM software industry.