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Investing.com - Rosenblatt Securities raised its price target on Pegasystems (NASDAQ:PEGA) to $70.00 from $65.00 on Wednesday, while maintaining a Buy rating following the company’s strong third-quarter performance. The stock, which has delivered a remarkable 55% return over the past six months, is currently trading near its 52-week high of $61.
Pegasystems reported revenue growth of 17% year-over-year to $381.4 million in the third quarter, exceeding both Rosenblatt’s estimate and the consensus forecast of $351.5 million. The outperformance was driven by better term license deals and healthy cloud revenue growth of 28% year-over-year to $184.5 million, representing 48% of total revenue. According to InvestingPro data, the company maintains strong fundamentals with a 75% gross profit margin and operates with moderate debt levels.
The company’s Annual Contract Value (ACV) reached $1,556.9 million, up 14.5% year-over-year (14% in constant currency), surpassing Rosenblatt’s estimate of $1,530 million. This growth reflects strong cloud platform demand and renewals, supported by traction from Pega Blueprint as customers look to modernize workflows.
Pega Cloud ACV grew 27% year-over-year to $815 million, highlighting the ongoing shift from on-premise implementations to cloud-based solutions. The company maintained its fiscal year 2025 guidance, expecting total ACV growth of 17%.
Rosenblatt increased its estimates for fiscal years 2025-2027 incrementally based on Pegasystems’ solid third-quarter results and overall outperformance.
In other recent news, Pegasystems Inc . reported impressive financial results for the third quarter of 2025, significantly exceeding Wall Street expectations. The company achieved earnings per share of $0.30, surpassing the forecasted $0.20, and reported revenue of $381.35 million against the expected $351.54 million. These results highlight Pegasystems’ robust performance and have contributed to strong investor confidence. Additionally, DA Davidson upgraded Pegasystems’ stock rating from Neutral to Buy, citing the company’s sustainable Cloud Annual Contract Value growth, which has accelerated for the third consecutive quarter. The firm also raised its price target for Pegasystems to $85.00. These recent developments underscore the positive outlook among analysts and investors regarding Pegasystems’ future performance.
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