Revenue Growth: Pegasystems reported a 9.5% year-over-year revenue increase, surpassing analysts' expectations by 5.9%. This growth is attributed to the company's unique approach to artificial intelligence (AI).
AI Differentiation: The company's AI-driven strategy has allowed it to stand out among competitors in the automation software sector, contributing to stronger revenue momentum.
Future Growth Projections
Long-term Revenue and Earnings Forecast: Pegasystems is projected to achieve $1.9 billion in revenue and $292.2 million in earnings by 2028, necessitating a 4.2% annual revenue growth and an increase of $72 million in earnings from the current $220.2 million.
Fair Value Estimates: The fair value of Pegasystems is estimated at $62.68, indicating a 16% upside from its current price. Estimates from the Simply Wall St Community range from $25.14 to $78, reflecting varying perspectives on the company's growth potential and revenue volatility.
Investment Considerations
Risks and Opportunities: Investors need to consider the potential for revenue fluctuations due to unpredictable term license revenue, which could impact short-term financial results despite the positive outlook on AI-driven innovation.
New Product Launch: The introduction of a new workflow-powered self-service solution, integrating Pega Blueprint and Predictable AI, underscores the company's commitment to AI product innovation as a catalyst for revenue growth and client engagement.
Market Context
Broader Market Trends: The article highlights the importance of understanding the fast-moving stock market and suggests that significant investment opportunities may exist beyond established giants like Nvidia and Microsoft, particularly in smaller AI-focused companies with strong growth potential.
Disclaimer
General Information: The article is intended for informational purposes only and does not constitute financial advice. It emphasizes the importance of conducting thorough research and considering various viewpoints before making investment decisions.
PEGA
$58.9+Infinity%1D
Analyst Views on PEGA
Wall Street analysts forecast PEGA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PEGA is 73.67 USD with a low forecast of 65.00 USD and a high forecast of 85.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
Wall Street analysts forecast PEGA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PEGA is 73.67 USD with a low forecast of 65.00 USD and a high forecast of 85.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Buy
1 Hold
0 Sell
Strong Buy
Current: 59.630
Low
65.00
Averages
73.67
High
85.00
Current: 59.630
Low
65.00
Averages
73.67
High
85.00
JPMorgan
Alexei Gogolev
Overweight
maintain
$65 -> $74
2025-12-05
Reason
JPMorgan
Alexei Gogolev
Price Target
$65 -> $74
2025-12-05
maintain
Overweight
Reason
JPMorgan analyst Alexei Gogolev raised the firm's price target on Pegasystems to $74 from $65 and keeps an Overweight rating on the shares. The firm sees cloud migration and legacy transformation driving the company's growth. The "accelerating push" to modernize legacy systems is fueling demand for Pegasystems,, as enterprises seek to replace outdated technologies with cloud-native, artificial intelligence-ready architectures, the analyst tells investors in a research note. JPMorgan believes the company's subscription-based model drives predictability.
Rosenblatt
Rosenblatt
Buy
maintain
$65 -> $70
2025-10-23
Reason
Rosenblatt
Rosenblatt
Price Target
$65 -> $70
2025-10-23
maintain
Buy
Reason
Rosenblatt raised the firm's price target on Pegasystems to $70 from $65 and keeps a Buy rating on the shares post the Q3 report. The company's shift to the cloud is driving strong results, the analyst tells investors in a research note. The firm upped estimates to reflect the company's "solid" Q3 report.
Wedbush
Outperform
maintain
$70 -> $75
2025-10-23
Reason
Wedbush
Price Target
$70 -> $75
2025-10-23
maintain
Outperform
Reason
Wedbush raised the firm's price target on Pegasystems to $75 from $70 and keeps an Outperform rating on the shares. The firm notes the company reported its Q3 earnings, which featured strong beats on the top and bottom-lines along with ACV growth coming in ahead of expectations which will be viewed positively by the Street driven by the company continuing to see significant traction of Blueprint that is accelerating Pega Cloud ACV growth. Wedbush cites a higher multiple and increased confidence in the Pegasystems growth story heading into the end of 2025 for the target change.
Barclays
Equal Weight
maintain
$58 -> $67
2025-10-23
Reason
Barclays
Price Target
$58 -> $67
2025-10-23
maintain
Equal Weight
Reason
Barclays raised the firm's price target on Pegasystems to $67 from $58 and keeps an Equal Weight rating on the shares. The company reported solid Q3 results, the analyst tells investors in a research note. The firm sees the stock "continuing to work" as further acceleration in Pega cloud growth "keeps the story alive."
About PEGA
Pegasystems Inc. is an enterprise transformation company that helps organizations Build for Change with enterprise artificial intelligence (AI) decisioning and workflow automation. It develops, markets, licenses, hosts and supports enterprise software that helps organizations make decisions and processes in real-time. Its platform for enterprise AI decisioning and workflow automation enables clients to personalize customer experiences, automate customer service, and streamline operations, business processes, and workflows. Its Pega Infinity is a software portfolio. Its applications and platform intersect with and encompass several software markets, including Customer Relationship Management, Digital Process Automation, Low-code application development platforms, Robotic Process Automation, Business Rules Management Systems, and Decision Management. Pega Platform, software for AI-powered workflow automation, boosts the efficiency of its clients’ processes and operational workflow.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
