Nucor earnings beat by $0.08, revenue fell short of estimates
Investing.com - Pegasystems Inc . (NASDAQ:PEGA) stock jumped 10% intraday after JMP Securities raised its price target to $78.00 from $63.00 while maintaining a Market Outperform rating. The stock is trading near its 52-week high of $58.04, having delivered an impressive 90% return over the past year.
The price target increase follows Pegasystems’ better-than-expected second-quarter 2025 results released Tuesday after market close, which showed non-GAAP earnings per share of $0.28, exceeding consensus estimates of $0.23.
The software company reported revenue of $385 million, representing 9% year-over-year growth and surpassing analyst expectations of $363 million, while operating margin came in at 14% compared to consensus of 15%.
Total (EPA:TTEF) Annual Contract Value (ACV) reached $1.514 billion, up 16% year-over-year, with Pega Cloud ACV growing 28% to $761 million, accelerating from 23% growth in the previous quarter.
Free cash flow for the quarter was $84 million, significantly above the consensus estimate of $52 million, contributing to the stock’s approximately 20% year-to-date gain, outperforming both the S&P 500 and Russell 3000 indices.
In other recent news, Pegasystems Inc. reported its second-quarter 2025 results, surpassing both earnings and revenue expectations. The company achieved non-GAAP earnings per share of $0.28, exceeding the consensus estimate of $0.23, on revenue of $385 million, which was above the $363 million consensus. Additionally, Pegasystems recorded record net new annual contract value growth of 16% year-over-year, driven by strong demand for its GenAI offerings. This performance led Citi to raise its price target for Pegasystems to $70, maintaining a Buy rating. JMP Securities also increased its price target to $78, citing strong ACV growth, while Barclays (LON:BARC) raised its target to $58, highlighting the company’s continued success in cloud growth. Rosenblatt adjusted its price target to $61, noting the 24% year-over-year growth in cloud revenue, which now accounts for 43% of Pegasystems’ total revenue. These developments reflect a positive outlook from analysts, despite a slight dip in the stock’s premarket trading.
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