Overview
Pegasystems Q3 revenue grows 17% yr/yr, beating analyst expectations
Adjusted EPS for Q3 beats consensus, driven by strong sales performance
Company repurchased 8.7 mln shares for $393 mln year-to-date
Outlook
Company did not provide specific future guidance in the press release
Result Drivers
AI STRATEGY - Pegasystems attributes its Q3 success to a differentiated AI strategy that enhances speed, predictability, and scale in enterprise applications
PEGA CLOUD GROWTH - Pega Cloud ACV increased by 27% yr/yr, driven by strong sales and the momentum of Pega Blueprint
CASH FLOW AND BUYBACKS - Operating cash flow grew 38% yr/yr, enabling significant share repurchases
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $381.35 mln | $345.24 mln (11 Analysts) |
Q3 Adjusted EPS | Beat | $0.30 | $0.19 (11 Analysts) |
Q3 EPS | $0.24 | ||
Q3 Adjusted Net Income | Beat | $55.16 mln | $36.09 mln (11 Analysts) |
Q3 Net Income | $43.36 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 2 "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 $65.00, about 15.7% above its October 20 closing price of $54.79
The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 28 three months ago
Press Release: ID:nBw9vS2cPa
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(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.)