Nucor earnings beat by $0.08, revenue fell short of estimates
Investing.com - Pegasystems Inc . (NASDAQ:PEGA) stock jumped 10% intraday Wednesday after JMP Securities raised its price target on the software company to $78.00 from $63.00 while maintaining a Market Outperform rating. According to InvestingPro data, the stock is now trading near its 52-week high of $58.04, with three analysts recently revising their earnings estimates upward.
The price target increase follows Pegasystems’ better-than-expected second-quarter 2025 results, which were released Tuesday after market close. The company reported non-GAAP earnings per share of $0.28, exceeding consensus estimates of $0.23, on revenue of $385 million, surpassing the $363 million consensus. InvestingPro analysis shows the company maintains a "GREAT" financial health score of 3.21, with particularly strong marks in growth and profitability metrics.
Pegasystems posted revenue growth of 9% year-over-year, significantly outpacing the consensus expectation of 3%. The company’s total annual contract value (ACV) reached $1.514 billion, up 16% year-over-year, compared to consensus estimates of $1.464 billion.
Pega Cloud ACV showed particularly strong performance at $761 million, representing 28% year-over-year growth and accelerating from 23% growth in the previous quarter. This metric substantially exceeded analyst expectations of $721 million.
Free cash flow came in at $84 million, well above the consensus estimate of $52 million, while the company achieved an operating margin of 14%, slightly below the 15% consensus expectation. The stock is now up approximately 20% year-to-date, outperforming both the S&P 500 and Russell 3000 indices, which have gained around 8% each.
In other recent news, Pegasystems reported impressive second-quarter 2025 results, exceeding both earnings and revenue forecasts. The company posted earnings per share of $0.28, surpassing the expected $0.24, and achieved revenue of $384.52 million, which exceeded the forecasted $362.5 million. This marked a revenue growth of 9% year-over-year, with cloud revenue contributing significantly, growing 24% to $166.7 million. Pegasystems also recorded a record second-quarter net new annual contract value with a 16% year-over-year increase.
Following these results, several analysts adjusted their price targets for Pegasystems. Citi raised its price target to $70, maintaining a Buy rating, citing strong demand for GenAI. Barclays (LON:BARC) increased its price target to $58, noting the company’s consistent above-consensus performance. Rosenblatt also raised its price target to $61, highlighting the significant contribution of cloud revenue to the overall growth.
These developments reflect positive sentiment among analysts regarding Pegasystems’ financial performance and future prospects. The company has demonstrated strong growth in key areas, contributing to the upward revisions in price targets.
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