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

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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