Pegasystems Surges After Q3 Beat, Cloud ACV +27%

Pegasystems reported Q3 CY2025 revenue of $381.4 million, a 17% year-over-year increase that topped Street estimates. Adjusted EPS was $0.30, well above consensus of roughly $0.18–$0.19, marking a swing to profitability from the year-ago quarter. Pega Cloud showed particularly strong momentum, with cloud ACV up about 27% year over year and overall ACV rising roughly 14%, which the company and partners attributed to demand for its AI-led automation offerings. CEO Alan Trefler said the firm's differentiated AI strategy is resonating with clients, and the results sent the stock higher (about a 4% regular-session gain and a roughly 13% after-hours jump; shares are up ~17.6% year-to-date). Despite the beat, some sell-side forecasts point to slower revenue growth ahead—consensus is around 2.7% over the next 12 months.