- CEO Alan Trefler said Pegasystems’ Q3 results are an indication that clients and partners are embracing Pega Blueprint as they commit to strategic transformation.
- The company’s annual contract value (ACV) climbed 14% to $1.56 billion.
- PEGA stock has gained 22.7% so far this year.
Pegasystems, Inc. (PEGA) shares climbed over 13% in Tuesday’s extended session after the enterprise artificial intelligence (AI) decision and workflow automation company reported a third-quarter beat. The earnings result for the third quarter of the fiscal year 2025 invited strong retail chatter on the Pegasystems stock stream on Stocktwits, with the retail mood seeing an appreciable improvement.
In overnight trading, the stock has tempered to 10.85%, according to Yahoo Finance.
What Pegasystems Q3 Print Reveals
Waltham, Massachusetts-based Pegaystems’ founder and CEO Alan Trefler said, “Our differentiated AI strategy continues to resonate deeply with clients, prospects, and partners, unlocking new levels of speed, predictability, and scale in enterprise applications.” He touted the results as an indication that clients and partners are embracing Pega Blueprint as they commit to strategic transformation.
Pega GenAI (generative AI) Blueprint is a collaborative application unveiled in February 2024, combining the power of generative AI with Pega’s industry “best practices” to turbocharge the app design process.
Pegasystems’ third-quarter revenue climbed 17% year-over-year (YoY) to $381.35 million, exceeding the Fiscal.ai-compiled consensus of $351.95 million. The adjusted earnings per share (EPS) climbed 58% YoY to $0.30, beating the $0.20 consensus by a wide margin.
The company noted that its annual contract value (ACV) climbed 14% to $1.56 billion, with the Pega Cloud ACV growing 27% to $815 million, and free cash flow rose 38% to $338 million.
Retail Climbs On Bullish Bandwagon
Buoyed by the quarterly print, retail sentiment toward Pegasystems stock improved to ‘extremely bullish’ from ‘neutral’ a day earlier. Retail chatter also increased to ‘extremely high’ levels, with the 24-hour message volume change leading up to late Tuesday at 1,800%.
A bullish user hoped that the stock would break out to new highs if the $60 level holds on Wednesday, calling it a “contrarian” bet at this point. The stock ended Tuesday’s session at $57.05, up 4.21%. Its previous all-time high of $73.63 was reached on Jan. 21, 2021.
Another user said new offerings in legacy application modernization using GenAI workflows will boost the stock beyond $100 by this time next year.
Pegasystems’ stock has gained 22.7% so far this year. According to the consensus stock price target compiled by Koyfin, the stock has 14% upside potential from its Tuesday’s close.
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