Pegasystems Reports 17% Revenue Growth Driven by AI Cloud Platform Expansion

Pegasystems reported strong third-quarter 2025 financial results, significantly surpassing revenue and earnings expectations with revenues up 17% year-over-year to $381.4 million and non-GAAP earnings per share of $0.30, a 50% beat over analyst estimates. The company attributes this success to accelerated adoption of its AI-powered, cloud-native platform, including its Blueprint design tool that shortens sales cycles and improves implementation reliability. Its cloud migration strategy and innovative AI offerings, such as GenAI Blueprint and Predictable AI Agents, have driven growth in annual contract value (ACV), which rose 14% overall and 27% for Pega Cloud ACV specifically. These advancements have resulted in renewed investor confidence, reflected in a stock price surge reaching a 52-week high and positive analyst Buy ratings emphasizing Pegasystems' competitive edge and growth potential. The company is positioned well in the business process management and customer relationship management software markets, benefiting from high customer switching costs and transitioning to a subscription-based revenue model. Overall, Pegasystems' focus on AI-driven automation and cloud solutions is fueling sustainable growth and transforming its market presence.