CRM software maker Pegasystems Q3 adjusted EPS beats estimates, driven by AI strategy

Pegasystems

21/10/2025 21:21

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

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