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
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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.)