Pegasystems Inc Stock Price, News & Analysis

Pegasystems (NASDAQ: PEGA) reported strong Q2 2025 financial results, driven by its AI strategy. The company achieved significant growth metrics, including a 16% year-over-year increase in Annual Contract Value (ACV) and a notable 28% growth in Pega Cloud ACV. Total revenue reached $384.5 million, up 9% year-over-year.

Key financial highlights include a 355% increase in GAAP net income to $30.1 million, with non-GAAP net income rising 9% to $50.2 million. The company's subscription revenue, representing 85% of total revenue, grew by 9% to $326 million. Pega Cloud backlog showed impressive growth of 30% year-over-year, while cash flow from operations and free cash flow both increased by over 30%.

Pegasystems (NASDAQ: PEGA) has announced a significant five-year strategic collaboration agreement (SCA) with Amazon Web Services (AWS). The partnership focuses on integrating AWS's advanced generative AI services, including Amazon Bedrock and AWS Transform, with Pega's Blueprint™ technology to accelerate legacy system modernization.

The collaboration addresses a critical market need, as 68% of IT decision makers report that legacy systems are hindering their adoption of AI and automation technologies. Pega will utilize Amazon Bedrock as the primary generative AI foundation for Pega Blueprint and Pega Platform™, providing clients access to large language models from providers like Anthropic, Amazon, Cohere, and Meta.

The agreement also establishes AWS Marketplace as the preferred transaction mechanism for Pega-as-a-Service, streamlining client access and offering comprehensive migration services for on-premises clients.

Pegasystems (NASDAQ: PEGA) has scheduled its second quarter 2025 financial results announcement for Tuesday, July 22, 2025, after market close. The company will host a conference call and webcast on Wednesday, July 23, 2025, at 8:00 a.m. EDT.

Investors can join via phone by dialing 1 (800) 715-9871 (domestic) or 1 (646) 307-1963 (international) using Conference ID 7346894. Alternatively, the webcast will be available at www.pega.com in the Investors section. A replay will be accessible through the Q2/FY'25 Earnings Call link on the company's website.

Pegasystems (NASDAQ: PEGA) has appointed Daniel Kasun as the new head of global partner ecosystem. Kasun, who previously held leadership positions at AWS and Microsoft, will report to John Higgins, chief of client and partner success, and lead the strategic evolution of Pega's partner ecosystem.

The appointment aligns with Pega's strategy to expand market reach through strategic partnerships and simplified commercial models. Key initiatives include strengthening alliances with global systems integrators and hyperscalers, accelerating the adoption of Pega GenAI™ and Pega Blueprint™, and expanding partner-influenced revenue globally.

Kasun brings extensive experience from AWS, where he led partner organizations focused on public sector and financial services industries, and Microsoft, where he spent 18 years driving innovation in regulated industries.

Pegasystems (NASDAQ: PEGA) has achieved FedRAMP High Authority to Operate (ATO) status for its generative AI solutions. This certification enables U.S. federal government clients to securely utilize Pega's gen AI-powered tools through Pega Cloud for Government.

The company's AI solutions include Pega Coach for contextual user guidance, Pega Knowledge Buddy for knowledge base synthesis, Pega Automate for workflow automation, and developer agents for streamlined application development. The certification also covers cloud architecture enhancements featuring improved scalability through microservices and Kubernetes-based container orchestration.

Pegasystems (NASDAQ: PEGA) announced a significant two-for-one stock split following shareholder approval to increase authorized shares. The split aims to enhance stock accessibility for investors and employees. The split will be effective after market close on June 20, 2025, with split-adjusted trading beginning on June 23, 2025. Additionally, PEGA declared a Q3 2025 dividend of $0.03 per share post-split ($0.06 pre-split equivalent), payable on July 15, 2025, to shareholders of record as of July 1, 2025.

Pegasystems (NASDAQ: PEGA) has been named a Leader in The Forrester Wave: AI Decisioning Platforms Q2 2025 report, achieving the highest score in the strategy category. The company received top marks in vision, innovation, roadmap, partner ecosystem, adoption, and supporting services criteria. Pega's AI platform excels in data modeling and integration, featuring robust governance capabilities and an extensible architecture. The evaluation focused on Pega Infinity, including Pega Platform and Customer Decision Hub, along with their GenAI-powered Pega Blueprint tool. Reference customers reported that Pega's implementation helped break down data silos, unify processes, and enable hyper-personalization for millions of consumers. The company has also recently received leadership recognition in multiple Gartner Magic Quadrant and Forrester Wave reports across various categories including Process Mining, CRM, and Low-code Application Platforms.

Pegasystems (NASDAQ: PEGA) announced significant agentic AI enhancements to Pega Infinity App Studio, set to launch in Q3 2025. The updates focus on streamlining enterprise application development through AI-powered features. Key innovations include an enhanced AI developer agent for real-time guidance, automated system integrations, AI-powered RPA design capabilities, automated testing suites, and accelerated UX configuration. The new features work in conjunction with Pega Blueprint, transforming app concepts into production-ready applications with improved speed and precision. These enhancements aim to democratize enterprise-grade application development while ensuring compliance with organizational best practices.

Pegasystems (NASDAQ: PEGA) announced the winners of its 2025 Pega Partner Awards at PegaWorld conference in Las Vegas. The awards recognize partners excelling in delivering client outcomes through Pega's AI-powered decisioning and workflow automation platform. Cognizant won Partner of the Year for overall excellence in enterprise transformation. Accenture received the Market Maker award for practice investment and innovation. Key category winners included TCS for Communications, Accenture for Financial Services, and Capgemini for Insurance. The awards span three categories: Partner Achievement, Pega Offering Impact, and Industry Excellence Awards. Partners were recognized for leveraging GenAI and delivering transformative solutions across various industries including healthcare, manufacturing, and government sectors. The announcement was made at PegaWorld 2025 at MGM Grand, which focuses on helping organizations optimize their technology strategies for productivity and innovation.